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Bill > S2637


NJ S2637

NJ S2637
Allocates $2.5 billion to unemployment compensation fund from federal government assistance and halts increases in employer unemployment taxes related to benefits paid during coronavirus disease 2019 pandemic state of emergency.


summary

Introduced
02/08/2024
In Committee
02/08/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill allocates $2.5 billion in available federal assistance to the unemployment compensation fund (fund). The money shall be deposited into the fund in order to pay back the balance in federal unemployment insurance loan advances pursuant to Title XII of the Social Security Act, prior to the date when the first interest payment is due, and notwithstanding any other provision of law concerning the actual fund reserve ratio for purposes of employer contribution rate for fiscal years 2022, 2023, and 2024, to increase the unemployment compensation fund balance. Current law requires that unemployment contribution rates for employers, for fiscal year 2022, will be the rates set by column "C" of the of the experience rating table, for FY 2023 the rates in column "D", and for FY 2024 the rates in column "E". The bill modifies that provision of law to specify that notwithstanding any other provision of law concerning the actual fund reserve ratio, the contribution rate for employers liable to pay contributions for fiscal years 2022, 2023, and 2024, would be the rates set by column "B" of the table.

AI Summary

This bill allocates $2.5 billion in federal assistance to the state's unemployment compensation fund to repay federal unemployment insurance loan advances and to increase the fund's balance. Crucially, it also halts increases in employer unemployment taxes that would have been triggered by benefits paid during the COVID-19 pandemic's state of emergency. Specifically, for fiscal years 2022, 2023, and 2024, employer contribution rates will be set according to a lower tax bracket (column "B" of the experience rating table) than what current law would dictate based on the fund's reserve ratio, thereby preventing higher taxes for employers.

Committee Categories

Labor and Employment

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Labor Committee (on 02/08/2024)

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