Unemployment Insurance Tax Increase

Unemployment Insurance Tax IncreaseNJ's Unemployment Insurance Fund Is Insolvent;
NJBIA Fights $1 Billion Payroll Tax Hike in 2010

New Jersey's Unemployment Insurance Fund is effectively bankrupt, paying out more in unemployment benefits than it collects in payroll taxes. If nothing is done, NJ employers will get hit with a $1 billion payroll tax increase on July 1 that would cost an average of $400 per employee. For some companies, the increase would be as much as $1,000 or more per employee.
To avoid a one-year tax increase of this magnitude, NJBIA has formed a UI coalition and is pushing for legislation to: 1) reform the State's bankrupt Unemployment Insurance Compensation Fund, 2) soften the blow of the tax hike by phasing it in over three years, and 3) bring NJ's UI benefits more in line with other states.

The Association strongly supports Governor Chris Christie's plan to make these and other common sense changes to the State’s unemployment insurance system.

Return to this page to keep up with developments in NJBIA's campaign to prevent a $1 billion payroll tax hike this year.