Late last week, the Assembly unanimously passed a measure to help small businesses offset expected unemployment insurance tax increases.
The legislation — Assembly Bill 3683, which was approved 78-0 by the full Assembly — would make corporate business tax and gross income tax credits available for taxable years beginning in 2023 and 2024, based on potential increases an employer sees in unemployment insurance contributions in Fiscal Years 2023 and 2024.
Those tax credits would be available to small businesses that have used other grants and subsidies to offset the increase in contributions.
The measure was co-sponsored by Assembly members Roy Freiman, D-16th District; Majority Leader Lou Greenwald, D-6th District; Annette Chaparro, D-33rd District; and Chris Tully, D-38th District.
“We’re putting money back into the pockets of small businesses owners allowing them to grow their operations and invest in their employees,” said Majority Leader Lou Greenwald, D-6th District. DEPOSIT PHOTOS
“This legislation will help over 70% of New Jersey businesses pay for scheduled unemployment insurance tax increases,” said Freiman. “With tax credits, we can offset the impact of any increases in unemployment insurance tax small businesses will see in the next few years.”
“We’re putting money back into the pockets of small businesses owners allowing them to grow their operations and invest in their employees,” said Greenwald. “Small businesses are the backbone of the economy. Their success is our success. This legislation will help relieve a potential burden that can hurt many small employers.”
The passage of the legislation was applauded by the New Jersey Business & Industry Association.
Siekerka
“NJBIA thanks the sponsors and the Assembly for their diligence and approval of these bills to help New Jersey businesses at a time when it’s really needed,” said Michele Siekerka, the NJBIA’s president and CEO. “It is crucially important that this issue be addressed as soon as possible so businesses can plan for the future.”
Under the measure, the Department of Labor & Workforce Development is required to provide a minimum of 30-days notice to employers when the UI rate will change. The current law, which was enacted to alleviate the financial burden on the restaurant industry and business community during COVID-19, expires on Nov. 30, 2022.
“Small businesses are rebuilding after having to navigate the last two years of the pandemic,” said Chaparro. “This legislation is a way to help small businesses keep down the costs associated with rising unemployment tax increases and place that money back into their business.”
“Our small businesses need our support now,” said Tully. “Helping them to stave off tax increases in the coming years will be critical to economic recovery post-pandemic.”
The bill awaits action on the Senate side before it would go to Gov. Phil Murphy’s desk.
