TRENTON – A bill dealing with unemployment tax rates on employers has been held from today’s Senate Budget Committee.
S1121 was being held so that sponsors and the governor’s office could work on the bill, committee Chair Sen. Paul Sarlo said.
As introduced, the bill would modify the “experience rating provisions” of the unemployment insurance law that is used to set employer tax rates.
Under the current law, the highest UI tax rate imposed on any employer is 7 percent, which applies to any employer with an “Employer Reserve Ratio” of negative 35 percent or lower.
“The lack of appropriate contribution rates for employers with much more negative reserve ratios has had the unfortunate effect of compelling employers with positive reserve ratios to subsidize the employers with highly negative reserve ratios,” the bill states.