Prevents future tax increases based on revisions to employee unemployment tax wage base; allocates $100 million to unemployment compensation fund from federal government assistance.

This bill (S 1355) prevents future increases in unemployment tax rates for employers by freezing the wage base used to calculate contributions at the 2022 level. It directly affects businesses paying unemployment taxes in New Jersey, as their contribution rates will not rise if the wage base is adjusted downward. The bill also allocates $100 million in federal government assistance to the state’s unemployment compensation fund. This funding aims to bolster the fund’s reserves without requiring additional state tax increases. The bill is currently pending in the Senate Labor Committee (introduced January 9, 2024).