29 June 2016 New Jersey employers to see even larger decrease than originally anticipated in SUI taxes beginning July 1, 2016 Governor Chris Christie recently announced, and the New Jersey Department of Labor and Workforce Development confirmed that employers will save even more in state unemployment insurance (SUI) taxes than originally projected for fiscal year (FY) 2017. As we previously reported, the governor announced that because the state's unemployment insurance (UI) trust fund has continued to have a positive balance of over $1 billion, employers would save $200 million in SUI taxes for FY 2017 when the rate schedule moved over one column to Schedule D. The governor has since said that because the UI trust fund now has a positive balance of $1.8 billion, the employer SUI tax savings will increase to $380 million for FY 2017. The rate schedule will move over two columns to Schedule C, with SUI tax rates ranging from 0.5% to 5.8%, down from the current Schedule E, with rates ranging from 1.2% to 7.0%. "This is the largest unemployment insurance tax relief in New Jersey history, the single biggest unemployment tax cut for businesses in the modern history of the state. On average, New Jersey companies will pay nearly $100 less per employee in taxes." The new employer rate will decrease to 2.8% for FY 2017 (rather than the previously anticipated 3.1%), down from the current 3.4%. The employer taxable wage base will continue at $32,600 for the remainder of calendar year 2016. The 2017 taxable wage base has not yet been announced. According to the Department's website, FY 2017 tax rate notices are expected to be issued during the fourth week of 2016.
Document ID: 2016-1138 | ||||||||||||||||||||
