Bill reducing UI tax rates signed into law

TRENTON – Legislation to protect unemployment benefits of workers has been signed into law.

Gov. Christie signed A3819, which is designed to solidify the Unemployment Insurance Fund and reduce the unemployment insurance tax rates that will be imposed on employers during fiscal years 2012 and 2013.

Employer tax liability will be cut from $300 per worker to $100 per employee on average, generating a savings of $450 million for New Jersey businesses, according to bill sponsors Assembly Democrats Joseph Egan, Elease Evans, Nellie Pou and John Wisniewski.

“This reform law will deliver long-term stability to the unemployment fund when solvency is realized and eliminate the short-term tax change unpredictability that has complicated New Jersey employers’ business planning,” Pou said in a release.

In addition to lowering the tax rates, it will modify, for all years after FY 2011, the Unemployment Insurance trust fund reserve ratios which set employer UI tax rates in such a manner that larger reserves are required in the trust fund than under the current law before employer UI taxes are reduced.

Sen. Fred Madden had sponsored the upper chamber version of the legislation.

Bill reducing UI tax rates signed into law