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NJ Senate Considers Bill To Shrink Unemployment Tax Hike For Businesses

Tax Forms (file / credit: Scott Olson/Getty Images)

Tax Forms (file / credit: Scott Olson/Getty Images)

TRENTON, N.J. (CBSNewYork/AP) — New Jersey businesses would be spared a sudden major hike in unemployment taxes under legislation that calls for the increase to be phased in.

A bill co-sponsored by Republicans and Democrats would spread the $300 per employee tax increase over several years rather than require full payment starting in July. It would reduce this year’s tax increase to $130 per employee.

The Senate Labor Committee will consider it Thursday. The full Assembly unanimously passed the bill on Monday.

The increase is needed to replenish the state’s Unemployment Insurance Fund, which is in the red.

New Jersey has been borrowing from the federal government to pay unemployment claims. It’s borrowed more than $1.6 billion so far.

Do you think it’s a good idea to spread out the tax hike over several years? Leave a comment below…

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