Governor Corzine Signs Bill to Prevent July Tax Increase to Employers

On June 19, Governor Jon Corzine signed S1698 into law authorizing a supplemental appropriation of $260 million from the State’s 2008 budget surplus to prevent a scheduled July tax increase on employers due to the depletion of State unemployment compensation funds. Without the appropriation from this bill, New Jersey law would have required that payroll taxes be automatically increased for employers to make up for the unemployment compensation funding shortfall of the minimum reserve level. 

Note: This article was published in the July 2008 issue of the New Jersey eAuthority.