State Labor Commissioner Robert Asaro-Angelo says New Jersey’s business community could see a potential $200 million reduction in the unemployment taxes they pay in FY 2020 if current economic conditions continue.
Asaro-Angelo told the Senate Budget & Appropriations Committee on Thursday that the unemployment trust fund balance is projected to grow to $3 billion by the end of the current fiscal year on June 30. Companies that pay regularly into the trust fund are already saving $263 million in the current fiscal year and could see a further tax cut in the FY 2020 if unemployment remains low.
NJBIA had strongly advocated for reforms that would lower unemployment insurance taxes earlier in the decade, and even co-chaired a UI Task Force. NJBIA Vice President Michael Wallace said this is good news for the business community.
“At a time of continuing rising business costs in the state, we’re pleased to see this savings,” Wallace told John Reitmeyer of NJ Spotlight. “Employers will reinvest this savings back into their business to help accommodate for the overall increase in the cost of doing business in New Jersey.”
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