Bill > A4261

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. For calendar year 2024, the taxable wage base for these programs is $42,300. Under current law, the taxable wage amount is determined annually by the Commissioner of Labor and Workforce Development by multiplying the Statewide average weekly wage by 28. 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, 2025.

AI Summary

Committee Categories

Michael Inganamort (R)*,  Bob Auth (R),  Al Barlas (R),  Dawn Fantasia (R), 

Introduced, Referred to Assembly Labor Committee (on 05/02/2024)

Official Document