NJ’s Unemployment Insurance Fund Finally Solvent
For years, leaders of both political parties in New Jersey routinely raided the Unemployment Insurance (UI) fund to help balance budgets. The state recently enacted a law banning the practice and today the fund is finally solvent. That’s great news for the state’s business community.
“It would be easy to miss in the midst of a government shutdown and partisan bickering in Washington, but here in New Jersey, government got it right,” said Phil Kirschner, president of the New Jersey Business and Industry Association. “Our UI fund faced serious financial problems, but instead of engaging in partisan finger-pointing, Gov. Chris Christie, the Legislature and the NJ Department of Labor and Workforce Development did the hard work necessary to soften the tax blow and fix the system so that we will not have to endure shortfalls again.”
Now that the UI fund is solvent and has enough money to cover its benefit payments businesses will save an estimated $211 million in January because employers will no longer have to pay an increase in their Federal Unemployment Tax Act taxes. Paying less in taxes could be lead to job growth which is something else New Jersey desperately needs.
“This is an issue we can all agree on,” said Kirschner. “A fiscally sound UI fund will lead to lower payroll taxes for business, uninterrupted benefits for those out of work, and peace of mind for employees statewide.”