Politics & Government
Small Business Advocacy Organizations Wanted Bill Consideration
They're disappointed that a Senate bill to offset a $300 million unemployment insurance tax was removed from consideration at the last hour.
July 10, 2022
(The Center Square) – Small business advocacy organizations are disappointed that a Senate bill to offset a $300 million unemployment insurance tax was removed from consideration at the last hour.
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Chrissy Buteas, New Jersey Business & Industry Association chief government affairs officer, told The Center Square the unemployment insurance trust fund depletion caused by the pandemic triggered a federal loan that the business community must repay to put funds back into the unemployment trust fund. She expressed disappointment that New Jersey didn’t offset the unemployment insurance tax that went into effect on July 1 with federal funds as other states have done.
“Basically, at no fault of their own, government mandated that our business community shut its doors during COVID-19, which depleted the unemployment insurance fund,” Buteas said.
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The NJBIA has been advocating that the state stop making them bear the full brunt of a $1 billion unemployment insurance tax increase.
“Unfortunately, and what is disappointing, is that New Jersey did not utilize any of those federal dollars to help replenish its unemployment trust fund,” she said.
The tax is based on how many employees work for a company. Buteas called it a tax on jobs – the more jobs a company has, the more it must pay into the unemployment trust. Every employer must pay into the system.
The bill had support in the New Jersey Assembly, and it passed out of committee with bipartisan, unanimous support. The NJBIA anticipated a favorable vote out of the entire Senate.
“Our understanding is that Gov. (Phil) Murphy is not supportive of the future legislation and replenishing the unemployment trust fund,” Buteas said. “But he’s had every opportunity to do it over the last couple of years and he hasn't done it.”
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