June 25, 2010

Tell legislators to support Gov. Christie's conditional veto of a $1 billion payroll tax increase

New Jersey is paying out more in unemployment benefits than it collects in payroll taxes, leaving the Unemployment Insurance (UI) fund effectively insolvent. If nothing is done, employers across the state will get hit with a $1 billion payroll tax increase requiring employers to pay an average additional tax of $400 per employee, but some companies could pay as much as $1,000 or more.

To address the problem, Gov. Chris Christie has conditionally vetoed S-1813. It is critically important that the Legislature act now to uphold Christie's conditional veto, or the full tax increase will go into effect July 1.

The conditional veto would prevent the full tax increase from going into effect this year and soften the blow for New Jersey employers who are still struggling in a difficult economy. It would also prevent people who are fired for misconduct from collecting unemployment benefits, saving the UI fund as much as $175 million per year.

But both houses of the Legislature must vote for the conditional veto and do so quickly. This tax will hurt businesses and damage your ability to retain or hire employees. We urge you to contact your legislators. Ask them to support the conditional veto to avoid a $1 billion tax increase on July 1. To find your legislators, click here.