New Jersey Governor Chris Christie recently signed into law A-3819 (S-2730), which reduces the unemployment tax rates that employers would have otherwise had to pay during the 2012 rate year (July 1, 2011 through June 30, 2012). The rates will increase, however, from the rate year 2011 rates.
Rates Will Be Determined Using Schedule D for 2012 Rate Year
During the 2011 rate year (July 1, 2010 through June 30, 2011), rates for employers in New Jersey were determined based on the rates in column C of the tax table. Without the passage of A-3819, employers would have had their rates for 2012 determined by column E of the tax table. Under A-3819, rates in 2012 will be determined by reference to column D of the tax table.
Minimum and Maximum Rates to Increase for 2012 Rate Year
The minimum rate for employers will increase from 0.5% for the 2011 rate year to 0.6% for the 2012 rate year. Had the rates changed to Schedule E, the minimum rate would have increased to 1.2%. The maximum rate for employers will increase from 5.8% for the 2011 rate year to 6.4% for the 2012 rate year. Had the rates changed to Schedule E, the maximum rate would have increased to 7.0%.
New Employer Rate Also Set to Increase for 2012 Rate Year
The rate for new employers will increase from 2.8% for the 2011 rate year to 3.1% for the 2012 rate year. Had the rates changed to Schedule E, the new employer rate would have increased to 3.4%.
Contact Vision Payroll Today
Contact Vision Payroll if you have any further questions on A-3819 and the impact on New Jersey unemployment tax rates.
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