Bill > A2417

Introduced Session

This bill reduces the taxable wage base applied to certain payroll tax contributions made by employers and employees. Current law establishes the level of wages subject to tax contributions required under the unemployment insurance, temporary disability insurance, and family leave insurance programs, as well as under the Workforce Development Partnership Fund and the Supplemental Workforce Fund for Basic Skills. Under current law, the Commissioner of Labor and Workforce Development determines the taxable wage amount annually by multiplying the Statewide average weekly wage by 28. For calendar year 2020, the taxable wage base for these programs is $35,300. This bill reduces the taxable wage base applied to these payroll tax contributions by requiring the commissioner to determine the taxable wage amount by multiplying the Statewide average weekly wage by 14, rather than 28. The bill provides that if the taxable wage amount determined by the commissioner in any given year is less than the taxable wage amount determined for the preceding year, the greater amount will be used. In effect, the bill reduces the taxable wage amount applied to tax contributions paid by employers and employees by approximately half beginning on January 1, 2021.

AI Summary

Committee Categories

BettyLou DeCroce (R)*,  Edward Thomson (R)*,  Harold Wirths (R)*,  Jon Bramnick (R),  Robert Clifton (R),  John DiMaio (R),  Aura Dunn (R),  Sean Kean (R),  Greg McGuckin (R),  Nancy Muñoz (R),  Erik Peterson (R), 

Introduced, Referred to Assembly Labor Committee (on 02/03/2020)