TRENTON, N.J. – On August 13, the New Jersey Department of Labor and Workforce Development posted a “Notice of Employer Contribution Rates” for fiscal year 2021-2022. The increased payments for employers will begin on October 30 as part of the payroll tax for the third quarter. Employer contributions for the year will be changing to Tax Table C.
This change is projected to result in a $250 million hike in unemployment insurance payroll taxes to replenish the Unemployment Insurance (UI) Fund, which has been depleted during the COVID-19 pandemic. NFIB has called on the Legislature and will continue to encourage Governor Phil Murphy to use federal funds towards UI replenishment.
“It is self defeating and unfair that New Jersey small business owners are carrying the financial burden of replenishing the UI fund,” said NFIB NJ State Director Eileen Kean. “A major purpose of the federal funding sent to New Jersey was to assist and support struggling businesses. It is outrageous that New Jersey has failed to provide funding as so many other states have done. Employers are struggling to keep their doors open because of staffing shortages, and now they will be hit with an increased tax. This is fundamentally wrong.”
Also, to view the update on the NJDOLWD website, click here.
For more than 75 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.