New Jersey Governor Chris Christie recently signed into law S-1813, which reduces the unemployment tax rates that employers would have otherwise had to pay during the 2011 rate year (July 1, 2010 through June 30, 2011). During the 2010 rate year (July 1, 2009 through June 30, 2010), rates for employers in New Jersey were determined based on the rates in column B of the tax table. Without the passage of S-1813, employers would have had their rates for 2011 determined by column E of the tax table. Additionally, a 10% surcharge would have applied to all employers. Under S-1813, rates in 2011 will be determined by reference to column C of the tax table.

Additionally, the new law establishes three levels of misconduct, (misconduct, severe misconduct, and gross misconduct), which either prohibit payment of unemployment benefits or extend the waiting period before benefits can be paid.

Finally, the bill creates an Unemployment Insurance Fund Task Force to study and assess, among other things, the current unemployment crisis and recommend how the state can restore the trust fund to solvency in a way that balances the interests of workers, employers and the overall economy.

Contact Vision Payroll if you have any further questions on S-1813.