TRENTON – Legislation sponsored by Senator Shirley K. Turner (D-Mercer, Hunterdon) and Senator Nia H. Gill (D-Essex, Passaic) that would require all health…
24 Nov: Sweeney-Sarlo Bill To Cut Employer Taxes And Discourage Raiding Of Unemployment Insurance Fund Signed Into Law
TRENTON – A bill sponsored by Senate Majority Leader Steve Sweeney and Senate Budget and Appropriations Committee Vice Chairman, Senator Paul A. Sarlo, which would reduce employer taxes paid to the unemployment insurance (UI) fund when the fund’s reserves exceed a certain cap was signed into law last week by Governor Corzine.
“New Jersey’s UI fund has been tapped in good times and bad to pay for a variety of unrelated programs, and over the last few years, the tab has come due,” said Senator Sweeney, D-Gloucester, Cumberland and Salem. “It’s only through massive cash infusions by the State Legislature and a tax increase on employers this fiscal year that we’ve kept the fund solvent. This cycle of diversion and emergency infusion is bad public policy, jeopardizing the fund’s long-term fiscal integrity and costing taxpayers billions.”
TRENTON – The Senate today approved a measure by a 39-0 vote to significantly reduce required payments by employers into the Unemployment Insurance Trust Fund if its reserves reach sufficient levels to trigger payment reductions of up to 50 percent.
The Senate approved the bill, S-562, sponsored by Senate Majority Leader Stephen M. Sweeney and Senator Paul A. Sarlo, and sent it to the Assembly for consideration.
“We’re saying if the UI Fund hits a reserve ratio of 5 percent, the employer contributions should be reduced by 25 percent,” said Senator Sweeney, D-Gloucester, Salem and Cumberland. “Then, if the reserve ratio rises to 7.5 percent, the employer payments should drop by 50 percent.”