Legislation that would eliminate the scheduled 10% surcharge on employers’ unemployment insurance tax was cleared by the Assembly Labor Committee today.
The bill, A-4112/A-3675, sponsored by Assemblywomen Amy Handlin (R-13, Monmouth) and Alison Little McHose (R-24, Hunterdon, Morris, Warren and Sussex), postpones the implementation of the surcharge, which is currently scheduled to go into effect on July 1, for one year. An identical bill, S-2404, passed the State Senate unanimously in February.
The Office of Legislative Services estimates that eliminating the surcharge will save employers $300 million in the coming fiscal year.
“The timing of this legislation is critical as we approach the summer season and with the effort to restore the Jersey Shore well underway,” stated Handlin. “Rebuilding communities involves both residential and commercial redevelopment. Companies who invest in our economy would face significant unemployment insurance increases which could impact their hiring decisions. This legislation ensures that the strides made in putting people back to work will not be affected by the cost increases that would have been felt under this surcharge.”