NJ UNEMPLOYMENT TAX MAY BE DIVERTED
Tuesday, May 27th, 2008By: Stacy Hory, Emerson Personnel Group
For 14 years, legislators have used funds reserved for NJ Unemployment payouts to assist local hospitals who treat uninsured residents. In doing so, the unemployment fund has fallen to a dangerous level that may set off an automatic $350 million payroll tax to employers starting July 1, 2008.
When Governor Corzine took office, he proposed transferring the $250 million surplus into the unemployment fund to offset the low level and avoid the tax increase. On May 22, 2008 the Senate approved Corzine’s Bill 38-0 but it still must be approved by the Assembly. Senate Budget Chairwoman Barbara Buono was quoted saying the move is “the right fix for these tough times”.
If the Assembly approves the bill, the $250 million will raise the level to $1.5 billion. The new level will still be dangerously low and the tax increase could still happen depending on economic conditions and new unemployment filings.