Unemployment Tax

May 22, 2008 - 4:41pm
PRESS RELEASE

Senate Approves Sweeney-Sarlo Bill To Lower Unemployment Tax Payments

SENATE APPROVES SWEENEY-SARLO BILL TO LOWER UNEMPLOYMENT TAX PAYMENTS

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.”

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