Measure Spares N.J. Businesses from Steep Tax Jump

Gov. Chris Christie has signed legislation that calls for the phasing in of a sharp increase in the state’s unemployment tax rate.

Proponents say that will spare businesses from having to immediately pay a hefty boost in the rate.

The increase, which needed to help restore the state’s depleted unemployment insurance fund, will now be phased in over a three-year period instead of imposing it all this year.

If the measure had not been adopted, state labor officials say employers would have been required to pay about $300 per worker during the current fiscal year, which started July 1. Instead, they will — on average — pay about $100.

The law seeks to protect businesses while the economy rebounds and the state seeks a permanent solution to the fund shortfall.

Topics New Jersey