The Tax Foundation listed its national ranking of unemployment taxes this week, as the fifth and final component of its 2021 State Business Tax Climate Index.
Unlike other components that led New Jersey to have the worst business tax climate in the nation, the Garden State ranks 31st out of 50 states for unemployment insurance taxes.
Despite it’s middle-of-the-road position on the list, New Jersey does have some serious concerns with unemployment insurance in 2021. It faces a $1 billion payroll tax increase all at once on July 1, 2021, due to the depletion of the state’s Unemployment Insurance Trust Fund in 2020.
A bill, however, which would protect employers from being hit with the massive spike all at once by phasing in more manageable increases over a period of three years is sitting on Gov. Phil Murphy’s desk.
To see where all states rank in unemployment insurance taxes, click here.
To see where all states finished in the overall 2021 State Business Tax Climate Index, click here.