Bill Would Delay Unemployment Tax Hike
By Phil Gregory, WBGO News
Trenton. May 13, 2013
New Jersey businesses might be able to avoid a 300-million dollar tax increase to re-fill the unemployment insurance fund.
The measure would postpone a 10 percent surcharge on unemployment insurance tax rates scheduled to take effect in July.
Assembly Labor Committee chairman Joe Egan says the unemployment insurance trust fund now has enough of a reserve to avoid the need for the surcharge.
“Enough money is coming in not to go to the ten percent. The employers certainly deserve to pay as little as they need to to keep the system alive and that’s what this bill does.”
Mike Eggenton with the New Jersey Chamber of Commerce says delaying the surcharge will help businesses.
“This legislation will allow employers to balance their ledgers, retain current employees, and potentially create new job opportunities.”
Supporters say preventing the surcharge from taking effect in the next fiscal year will save employers about $300 million.