Reduces taxable wage base applied to certain tax contributions.

S3876

SENATE, No. 3876

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 12, 2026

Sponsored by:

Senator� ANTHONY M. BUCCO

District 25 (Morris and Passaic)

SYNOPSIS

���� Reduces taxable wage base applied to certain tax
contributions.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning payroll taxes and amending R.S.43:21-7.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� R.S.43:21-7 is amended
to read as follows:

���� 43:21-7.� Employers other than
governmental entities, whose benefit financing provisions are set forth in
section 4 of P.L.1971, c.346 (C.43:21-7.3), and those nonprofit organizations
liable for payment in lieu of contributions on the basis set forth in section 3
of P.L.1971, c.346 (C.43:21-7.2), shall pay to the controller for the
unemployment compensation fund, contributions as set forth in subsections (a),
(b) and (c) hereof, and the provisions of subsections (d) and (e) shall be
applicable to all employers, consistent with the provisions of the
"unemployment compensation law" and the "Temporary Disability
Benefits Law," P.L.1948, c.110 (C.43:21-25 et al.).

���� (a)�� Payment.

���� (1)�� Contributions shall
accrue and become payable by each employer for each calendar year in which he
is subject to this chapter (R.S.43:21-1 et seq.), with respect to having
individuals in his employ during that calendar year, at the rates and on the
basis hereinafter set forth. Such contributions shall become due and be paid by
each employer to the controller for the fund, in accordance with such
regulations as may be prescribed, and shall not be deducted, in whole or in
part, from the remuneration of individuals in his employ.

���� (2)�� In the payment of any
contributions, a fractional part of a cent shall be disregarded unless it
amounts to $0.005 or more, in which case it shall be increased to $0.01.

���� (b)�� Rate of contributions.
Each employer shall pay the following contributions:

���� (1)�� For the calendar year
1947, and each calendar year thereafter, 2 7/10% of wages paid by him during
each such calendar year, except as otherwise prescribed by subsection (c) of
this section.

���� (2)�� The "wages" of
any individual, with respect to any one employer, as the term is used in this
subsection (b) and in subsections (c), (d) and (e) of this section 7, shall
include the first $4,800.00 paid during calendar year 1975, for services performed
either within or without this State; provided that no contribution shall be
required by this State with respect to services performed in another state if
such other state imposes contribution liability with respect thereto.� If an
employer (hereinafter referred to as a successor employer) during any calendar
year acquires substantially all the property used in a trade or business of
another employer (hereinafter referred to as a predecessor), or used in a
separate unit of a trade or business of a predecessor, and immediately after
the acquisition employs in his trade or business an individual who immediately
prior to the acquisition was employed in the trade or business of such
predecessors, then, for the purpose of determining whether the successor
employer has paid wages with respect to employment equal to the first $4,800.00
paid during calendar year 1975, any wages paid to such individual by such
predecessor during such calendar year and prior to such acquisition shall be
considered as having been paid by such successor employer.

���� (3)��
(A)
For calendar
years beginning on and after January 1, 1976, the "wages" of any
individual, as defined in the preceding paragraph (2) of this subsection (b),
shall be established and promulgated by the Commissioner of Labor and Workforce
Development on or before September 1 of the preceding year and, except as
provided in paragraph (4) of this subsection (b), shall be, 28 times the
Statewide average weekly remuneration paid to workers by employers, as
determined under R.S.43:21-3(c), raised to the next higher multiple of $100.00
if not already a multiple thereof, provided that if the amount of wages so
determined for a calendar year is less than the amount similarly determined for
the preceding year, the greater amount will be used; provided, further, that if
the amount of such wages so determined does not equal or exceed the amount of
wages as defined in subsection (b) of section 3306 of the Internal Revenue Code
of 1986 (26 U.S.C. s.3306(b)), the wages as determined in this paragraph in any
calendar year shall be raised to equal the amount established under the
"Federal Unemployment Tax Act," chapter 23 of the Internal Revenue
Code of 1986 (26 U.S.C. s.3301 et seq.), for that calendar year.

����
(B)� For calendar years
beginning on and after January 1, 2022, the �wages� of any individual, as
defined in the preceding paragraph (2) of this subsection (b), shall be
established and promulgated by the Commissioner of Labor and Workforce
Development on or before September 1 of the preceding year and shall be, 14
times the Statewide average weekly remuneration paid to workers by employers,
as determined under R.S.43:21-3(c), raised to the next higher multiple of
$100.00 if not already a multiple thereof, provided that if the amount of wages
so determined for a calendar year is less than the amount similarly determined
for the preceding year, the greater amount will be used; provided, further,
that if the amount of the wages so determined does not equal or exceed the
amount of wages as defined in subsection (b) of section 3306 of the Internal
Revenue Code of 1986 (26 U.S.C. s.3306(b)), the wages as determined in this
paragraph in any calendar year shall be raised to equal the amount established
under the �Federal Unemployment Tax Act,� chapter 23 of the Internal Revenue
Code of 1986 (26 U.S.C. s.3301 et seq.), for that calendar year.

���� (4)�� For calendar years
beginning on and after January 1, 2020, the "wages" of any
individual, as defined in the preceding paragraph (2) of this subsection (b)
for purposes of contributions of workers to the State disability benefits fund,
including the "Family Temporary Disability Leave Account" pursuant to
subsection (d) of this section, shall be established and promulgated by the
Commissioner of Labor and Workforce Development on or before September 1 of the
preceding year and shall be 107 times the Statewide average weekly remuneration
paid to workers by employers, as determined under R.S.43:21-3(c), raised to the
next higher multiple of $100.00 if not already a multiple thereof, provided
that if the amount of wages so determined for a calendar year is less than the
amount similarly determined for the preceding year, the greater amount will be
used.

���� (c)�� Future rates based on
benefit experience.

���� (1)�� A separate account for
each employer shall be maintained and this shall be credited with all the
contributions which he has paid on his own behalf on or before January 31 of
any calendar year with respect to employment occurring in the preceding
calendar year; provided, however, that if January 31 of any calendar year falls
on a Saturday or Sunday, an employer's account shall be credited as of January
31 of such calendar year with all the contributions which he has paid on or
before the next succeeding day which is not a Saturday or Sunday. But nothing
in this chapter (R.S.43:21-1 et seq.) shall be construed to grant any employer
or individuals in his service prior claims or rights to the amounts paid by him
into the fund either on his own behalf or on behalf of such individuals.
Benefits paid with respect to benefit years commencing on and after January 1,
1953, to any individual on or before December 31 of any calendar year with
respect to unemployment in such calendar year and in preceding calendar years shall
be charged against the account or accounts of the employer or employers in
whose employment such individual established base weeks constituting the basis
of such benefits, except that, with respect to benefit years commencing after
January 4, 1998, an employer's account shall not be charged for benefits paid
to a claimant if: (1) the claimant's employment by that employer was ended in
any way which, pursuant to subsection (a), (b), (c), (f), (g) or (h) of
R.S.43:21-5, would have disqualified the claimant for benefits if the claimant
had applied for benefits at the time when that employment ended, or (2) the
claimant's employment by that employer continued and the claimant continued to
both perform work for and receive remuneration from that employer, during the
claimant's period of unemployment.� Benefits paid under a given benefit
determination shall be charged against the account of the employer to whom such
determination relates.� When each benefit payment is made, notification shall
be promptly provided to each employer included in the unemployment insurance
monetary calculation of benefits.� Such notification shall identify the
employer against whose account the amount of such payment is being charged,
shall show at least the name and social security account number of the claimant
and shall specify the period of unemployment to which said benefit payment
applies.

���� An annual summary statement of
unemployment benefits charged to the employer's account shall be provided.

���� (2)�� Regulations may be
prescribed for the establishment, maintenance, and dissolution of joint
accounts by two or more employers, and shall, in accordance with such
regulations and upon application by two or more employers to establish such an
account, or to merge their several individual accounts in a joint account,
maintain such joint account as if it constituted a single employer's account.

���� (3)�� No employer's rate shall
be lower than 5.4% unless assignment of such lower rate is consistent with the
conditions applicable to additional credit allowance for such year under
section 3303(a)(1) of the Internal Revenue Code of 1986 (26 U.S.C. s.3303(a)(1)),
any other provision of this section to the contrary notwithstanding.

���� (4)�� Employer Reserve Ratio.�
(A)� Each employer's rate shall be 2 8/10%, except as otherwise provided in the
following provisions.� No employer's rate for the 12 months commencing July 1
of any calendar year shall be other than 2 8/10%, unless as of the preceding
January 31 such employer shall have paid contributions with respect to wages
paid in each of the three calendar years immediately preceding such year, in
which case such employer's rate for the 12 months commencing July 1 of any
calendar year shall be determined on the basis of his record up to the
beginning of such calendar year. If, at the beginning of such calendar year,
the total of all his contributions, paid on his own behalf, for all past years
exceeds the total benefits charged to his account for all such years, his
contribution rate shall be:

���� (1)�� 2 5/10%, if such excess
equals or exceeds 4%, but less than 5%, of his average annual payroll (as
defined in paragraph (2), subsection (a) of R.S.43:21-19);

���� (2)�� 2 2/10%, if such excess
equals or exceeds 5%, but is less than 6%, of his average annual payroll;

���� (3)�� 1 9/10%, if such excess
equals or exceeds 6%, but is less than 7%, of his average annual payroll;

���� (4)�� 1 6/10%, if such excess
equals or exceeds 7%, but is less than 8%, of his average annual payroll;

���� (5)�� 1 3/10%, if such excess
equals or exceeds 8%, but is less than 9%, of his average annual payroll;

���� (6)�� 1%, if such excess
equals or exceeds 9%, but is less than 10%, of his average annual payroll;

���� (7)�� 7/10 of 1%, if such
excess equals or exceeds 10%, but is less than 11%, of his average annual
payroll;

���� (8)�� 4/10 of 1%, if such
excess equals or exceeds 11% of his average annual payroll.

���� (B)� If the total of an
employer's contributions, paid on his own behalf, for all past periods for the
purposes of this paragraph (4), is less than the total benefits charged against
his account during the same period, his rate shall be:

���� (1)�� 4%, if such excess is
less than 10% of his average annual payroll;

���� (2)�� 4 3/10%, if such excess
equals or exceeds 10%, but is less than 20%, of his average annual payroll;

���� (3)�� 4 6/10%, if such excess
equals or exceeds 20% of his average annual payroll.

���� (C)� Specially assigned rates.

���� (i)��� If no contributions
were paid on wages for employment in any calendar year used in determining the
average annual payroll of an employer eligible for an assigned rate under this
paragraph (4), the employer's rate shall be specially assigned as follows:

���� if the reserve balance in its
account is positive, its assigned rate shall be the highest rate in effect for
positive balance accounts for that period, or 5.4%, whichever is higher, and

���� if the reserve balance in its
account is negative, its assigned rate shall be the highest rate in effect for
deficit accounts for that period.

���� (ii)�� If, following the
purchase of a corporation with little or no activity, known as a corporate
shell, the resulting employing unit operates a new or different business
activity, the employing unit shall be assigned a new employer rate.

���� (iii) Entities operating under
common ownership, management or control, when the operation of the entities is
not identifiable, distinguishable and severable, shall be considered a single
employer for the purposes of this chapter (R.S.43:21-1 et seq.).

���� (D)� The contribution rates
prescribed by subparagraphs (A) and (B) of this paragraph (4) shall be
increased or decreased in accordance with the provisions of paragraph (5) of
this subsection (c) for experience rating periods through June 30, 1986.

���� (5)�� (A)� Unemployment Trust
Fund Reserve Ratio. If on March 31 of any calendar year the balance in the
unemployment trust fund equals or exceeds 4% but is less than 7% of the total
taxable wages reported to the controller as of that date in respect to employment
during the preceding calendar year, the contribution rate, effective July 1
following, of each employer eligible for a contribution rate calculation based
upon benefit experience, shall be increased by 3/10 of 1% over the contribution
rate otherwise established under the provisions of paragraph (3) or (4) of this
subsection.� If on March 31 of any calendar year the balance of the
unemployment trust fund exceeds 2 1/2% but is less than 4% of the total taxable
wages reported to the controller as of that date in respect to employment
during the preceding calendar year, the contribution rate, effective July 1
following, of each employer eligible for a contribution rate calculation based
upon benefit experience, shall be increased by 6/10 of 1% over the contribution
rate otherwise established under the provisions of paragraph (3) or (4) of this
subsection.

���� If on March 31 of any calendar
year the balance of the unemployment trust fund is less than 2 1/2% of the
total taxable wages reported to the controller as of that date in respect to
employment during the preceding calendar year, the contribution rate, effective
July 1 following, of each employer: (1) eligible for a contribution rate
calculation based upon benefit experience, shall be increased by (i) 6/10 of 1%
over the contribution rate otherwise established under the provisions of
paragraph (3), (4)(A) or (4)(B) of this subsection, and (ii) an additional
amount equal to 20% of the total rate established herein, provided, however,
that the final contribution rate for each employer shall be computed to the
nearest multiple of 1/10% if not already a multiple thereof; (2) not eligible
for a contribution rate calculation based upon benefit experience, shall be
increased by 6/10 of 1% over the contribution rate otherwise established under
the provisions of paragraph (4) of this subsection. For the period commencing
July 1, 1984 and ending June 30, 1986, the contribution rate for each employer
liable to pay contributions under R.S.43:21-7 shall be increased by a factor of
10% computed to the nearest multiple of 1/10% if not already a multiple
thereof.

���� (B)� If on March 31 of any
calendar year the balance in the unemployment trust fund equals or exceeds 10%
but is less than 12 1/2% of the total taxable wages reported to the controller
as of that date in respect to employment during the preceding calendar year,
the contribution rate, effective July 1 following, of each employer eligible
for a contribution rate calculation based upon benefit experience, shall be
reduced by 3/10 of 1% under the contribution rate otherwise established under
the provisions of paragraphs (3) and (4) of this subsection; provided that in
no event shall the contribution rate of any employer be reduced to less than
4/10 of 1%. If on March 31 of any calendar year the balance in the unemployment
trust fund equals or exceeds 12 1/2% of the total taxable wages reported to the
controller as of that date in respect to employment during the preceding
calendar year, the contribution rate, effective July 1 following, of each
employer eligible for a contribution rate calculation based upon benefit experience,
shall be reduced by 6/10 of 1% if his account for all past periods reflects an
excess of contributions paid over total benefits charged of 3% or more of his
average annual payroll, otherwise by 3/10 of 1% under the contribution rate
otherwise established under the provisions of paragraphs (3) and (4) of this
subsection; provided that in no event shall the contribution rate of any
employer be reduced to less than 4/10 of 1%.

���� (C)� The "balance"
in the unemployment trust fund, as the term is used in subparagraphs (A) and
(B) above, shall not include moneys credited to the State's account under
section 903 of the Social Security Act, as amended (42 U.S.C. s.1103), during any
period in which such moneys are appropriated for the payment of expenses
incurred in the administration of the "unemployment compensation
law."

���� (D)� Prior to July 1 of each
calendar year the controller shall determine the Unemployment Trust Fund
Reserve Ratio, which shall be calculated by dividing the balance of the
unemployment trust fund as of the prior March 31 by total taxable wages
reported to the controller by all employers as of March 31 with respect to
their employment during the last calendar year.

���� (E)� (i) (Deleted by
amendment, P.L.1997, c.263).

���� (ii)�� (Deleted by amendment,
P.L.2001, c.152).

���� (iii)� (Deleted by amendment,
P.L.2003, c.107).

���� (iv)� (Deleted by amendment,
P.L.2004, c.45).

���� (v)�� (Deleted by amendment,
P.L.2008, c.17).

���� (vi)� (Deleted by amendment,
P.L.2013, c.75).

���� (vii)� With respect to
experience rating years beginning on or after July 1, 2011, the new employer
rate or the unemployment experience rate of an employer under this section
shall be the rate which appears in the column headed by the Unemployment Trust Fund
Reserve Ratio as of the applicable calculation date and on the line with the
Employer Reserve Ratio, as defined in paragraph (4) of this subsection
(R.S.43:21-7 (c)(4)), as set forth in the following table:

EXPERIENCE RATING TAX TABLE

����������������������������������������������� Fund
Reserve Ratio1

����������������������������������� 3.50%� 3.00%� 2.5%��� 2.0%��� 1.99%

Employer�������������������������������� �
and��� �� to����� �� to����� �� to����� � and

���� Reserve������������������ Over��� 3.49%� 2.99%� 2.49%� Under

���� Ratio2�������������������������������� �
A������ � B������ � C������ � D������ � E

Positive Reserve Ratio:

���� 17% and over�������������������� 0.3������ 0.4������ 0.5������ 0.6������ 1.2

16.00% to 16.99%����������������� 0.4������ 0.5������ 0.6������ 0.6������ 1.2

15.00% to 15.99%����������������� 0.4������ 0.6������ 0.7������ 0.7������ 1.2

14.00% to 14.99%����������������� 0.5������ 0.6
����� 0.7������ 0.8������ 1.2

13.00% to 13.99%����������������� 0.6������ 0.7������ 0.8������ 0.9������ 1.2

12.00% to 12.99%����������������� 0.6������ 0.8������ 0.9������ 1.0������ 1.2

11.00% to 11.99%����������������� 0.7������ 0.8������ 1.0������ 1.1������ 1.2

10.00% to 10.99%����������������� 0.9������ 1.1������ 1.3������ 1.5������ 1.6

9.00% to 9.99%��������������������� 1.0������ 1.3������ 1.6������ 1.7������ 1.9

8.00% to 8.99%��������������������� 1.3������ 1.6������ 1.9������ 2.1������ 2.3

7.00% to 7.99%��������������������� 1.4������ 1.8������ 2.2������ 2.4������ 2.6

6.00% to 6.99%��������������������� 1.7������ 2.1������ 2.5������ 2.8������ 3.0

5.00% to 5.99%��������������������� 1.9������ 2.4������ 2.8������ 3.1������ 3.4

4.00% to 4.99%��������������������� 2.0������ 2.6������ 3.1������ 3.4������ 3.7

3.00% to 3.99%��������������������� 2.1������ 2.7������ 3.2������ 3.6������ 3.9

2.00% to 2.99%��������������������� 2.2������ 2.8������ 3.3������ 3.7������ 4.0

1.00% to 1.99%��������������������� 2.3������ 2.9������ 3.4������ 3.8������ 4.1

0.00% to 0.99%��������������������� 2.4������ 3.0������ 3.6������ 4.0������ 4.3

Deficit Reserve Ratio:

-0.00% to -2.99%������������������ 3.4������ 4.3������ 5.1������ 5.6������ 6.1

-3.00% to -5.99%������������������ 3.4������ 4.3������ 5.1������ 5.7������ 6.2

-6.00% to -8.99%������������������ 3.5������ 4.4������ 5.2������ 5.8������ 6.3

-9.00% to-11.99%����������������� 3.5������ 4.5������ 5.3������ 5.9������ 6.4

-12.00% to-14.99%��������������� 3.6������ 4.6������ 5.4������ 6.0������ 6.5

-15.00% to-19.99%��������������� 3.6������ 4.6������ 5.5������ 6.1������ 6.6

-20.00% to-24.99%��������������� 3.7������ 4.7������ 5.6������ 6.2������ 6.7

-25.00% to-29.99%��������������� 3.7������ 4.8������ 5.6������ 6.3������ 6.8

-30.00% to-34.99%��������������� 3.8������ 4.8������ 5.7������ 6.3������ 6.9

-35.00% and under���������������� 5.4������ 5.4������ 5.8������ 6.4������ 7.0

New Employer Rate������������� 2.8������ 2.8������ 2.8������ 3.1������ 3.4

���� 1Fund balance as of March 31
as a percentage of taxable wages in the prior calendar year.

���� 2Employer Reserve Ratio
(Contributions minus benefits as a percentage of employer's taxable wages).

���� (F)� (i)� (Deleted by
amendment, P.L.1997, c.263).

���� (ii)�� (Deleted by amendment,
P.L.2008, c.17).

���� (iii)� (Deleted by amendment,
P.L.2013, c.75).

���� (iv)� With respect to
experience rating years beginning on or after July 1, 2011 and before July 1,
2013, if the fund reserve ratio, based on the fund balance as of the prior
March 31, is less than 1.0%, the contribution rate for each employer liable to pay
contributions, as

computed under subparagraph (E) of
this paragraph (5), shall be increased by a factor of 10% computed to the
nearest multiple of 1/10% if not already a multiple thereof.

���� (v)�� With respect to
experience rating years beginning on or after July 1, 2014, if the fund reserve
ratio, based on the fund balance as of the prior March 31, is less than 1.0%,
the contribution rate for each employer liable to pay contributions, as
computed under subparagraph (E) of this paragraph (5), shall be increased by a
factor of 10% computed to the nearest multiple of 1/10% if not already a
multiple thereof.

���� (G)� On or after January 1,
1993, notwithstanding any other provisions of this paragraph (5), the
contribution rate for each employer liable to pay contributions, as computed
under subparagraph (E) of this paragraph (5), shall be decreased by 0.1%,
except that, during any experience rating year starting before January 1, 1998
in which the fund reserve ratio is equal to or greater than 7.00% or during any
experience rating year starting on or after January 1, 1998, in which the fund
reserve ratio is equal to or greater than 3.5%, there shall be no decrease
pursuant to this subparagraph (G) in the contribution of any employer who has a
deficit reserve ratio of negative 35.00% or under.

���� (H)� On and after January 1,
1998 until December 31, 2000 and on or after January 1, 2002 until June 30,
2006, the contribution rate for each employer liable to pay contributions, as
computed under subparagraph (E) of this paragraph (5), shall be decreased by a
factor, as set out below, computed to the nearest multiple of 1/10%, except
that, if an employer has a deficit reserve ratio of negative 35.0% or under,
the employer's rate of contribution shall not be reduced pursuant to this
subparagraph (H) to less than 5.4%:

���� From January 1, 1998 until
December 31, 1998, a factor of 12%;

���� From January 1, 1999 until
December 31, 1999, a factor of 10%;

���� From January 1, 2000 until
December 31, 2000, a factor of 7%;

���� From January 1, 2002 until
March 31, 2002, a factor of 36%;

���� From April 1, 2002 until June
30, 2002, a factor of 85%;

���� From July 1, 2002 until June
30, 2003, a factor of 15%;

���� From July 1, 2003 until June
30, 2004, a factor of 15%;

���� From July 1, 2004 until June
30, 2005, a factor of 7%;

���� From July 1, 2005 until
December 31, 2005, a factor of 16%; and

���� From January 1, 2006 until
June 30, 2006, a factor of 34%.

���� The amount of the reduction in
the employer contributions stipulated by this subparagraph (H) shall be in
addition to the amount of the reduction in the employer contributions
stipulated by subparagraph (G) of this paragraph (5), except that the rate of contribution
of an employer who has a deficit reserve ratio of negative 35.0% or under shall
not be reduced pursuant to this subparagraph (H) to less than 5.4% and the rate
of contribution of any other employer shall not be reduced to less than 0.0%.

���� (I)�� (Deleted by amendment,
P.L.2008, c.17).

���� (J)�� On or after July 1,
2001, notwithstanding any other provisions of this paragraph (5), the
contribution rate for each employer liable to pay contributions, as computed
under subparagraph (E) of this paragraph (5), shall be decreased by 0.0175%,
except that, during any experience rating year starting on or after July 1,
2001, in which the fund reserve ratio is equal to or greater than 3.5%, there
shall be no decrease pursuant to this subparagraph (J) in the contribution of
any employer who has a deficit reserve ratio of negative 35.00% or under. The
amount of the reduction in the employer contributions stipulated by this
subparagraph (J) shall be in addition to the amount of the reduction in the
employer contributions stipulated by subparagraphs (G) and (H) of this
paragraph (5), except that the rate of contribution of an employer who has a
deficit reserve ratio of negative 35.0% or under shall not be reduced pursuant
to this subparagraph (J) to less than 5.4% and the rate of contribution of any
other employer shall not be reduced to less than 0.0%.

���� (K)� With respect to
experience rating years beginning on or after July 1, 2009, if the fund reserve
ratio, based on the fund balance as of the prior March 31, is:

���� (i)��� Equal to or greater
than 5.00% but less than 7.5%, the contribution rate for each employer liable
to pay contributions, as computed under subparagraph (E) of this paragraph (5),
shall be reduced by a factor of 25% computed to the nearest multiple of 1/10%
if not already a multiple thereof except that there shall be no decrease
pursuant to this subparagraph (K) in the contribution of any employer who has a
deficit reserve ratio of 35.00% or under;

���� (ii)�� Equal to or greater
than 7.5%, the contribution rate for each employer liable to pay contributions,
as computed under subparagraph (E) of this paragraph (5), shall be reduced by a
factor of 50% computed to the nearest multiple of 1/10% if not already a multiple
thereof except that there shall be no decrease pursuant to this subparagraph
(K) in the contribution of any employer who has a deficit reserve ratio of
35.00% or under.

���� (L)� Notwithstanding any other
provision of this paragraph (5) and notwithstanding the actual fund reserve
ratio, the contribution rate for employers liable to pay contributions, as
computed under subparagraph (E) of this paragraph (5), shall be, for fiscal year
2011, the rates set by column "C" of the table in that subparagraph.

���� (M) Notwithstanding any other
provision of this paragraph (5) and notwithstanding the actual fund reserve
ratio, the contribution rate for employers liable to pay contributions, as
computed under subparagraph (E) of this paragraph (5), shall be, for fiscal
year 2012, the rates set by column "D" of the table in that
subparagraph.

���� (N)� Notwithstanding any other
provision of this paragraph (5) and notwithstanding the actual fund reserve
ratio, the contribution rate for employers liable to pay contributions, as
computed under subparagraph (E) of this paragraph (5), shall be, for fiscal
year 2013, the rates set by column "E" of the table in that
subparagraph.

���� (O)� Notwithstanding any other
provision of this paragraph (5) and notwithstanding the actual fund reserve
ratio, the contribution rate for employers liable to pay contributions, as
computed under subparagraph (E) of this paragraph (5), shall be, for fiscal year
2022, the rates set by column "C" of the table in that subparagraph.

���� (P)� Notwithstanding any other
provision of this paragraph (5) and notwithstanding the actual fund reserve
ratio, the contribution rate for employers liable to pay contributions, as
computed under subparagraph (E) of this paragraph (5), shall be, for fiscal
year 2023, the rates set by column "D" of the table in that
subparagraph, unless the application of the provisions of this paragraph (5)
using the actual fund reserve ratio would result in the contribution rate for
employers being set by a column which has lower tax rates than the rates in
column "D", in which case the employers shall be liable to pay
contributions at the rates set by the column with the lower tax rates.

���� (Q)� Notwithstanding any other
provision of this paragraph (5) and notwithstanding the actual fund reserve
ratio, the contribution rate for employers liable to pay contributions, as
computed under subparagraph (E) of this paragraph (5), shall be, for fiscal
year 2024, the rates set by column "E" of the table in that
subparagraph, unless the application of the provisions of this paragraph (5)
using the actual fund reserve ratio would result in the contribution rate for
employers being set by a column which has lower tax rates than the rates in
column "E", in which case the employers shall be liable to pay
contributions at the rates set by the column with the lower tax rates.

���� (6)�� Additional
contributions.

���� Notwithstanding any other
provision of law, any employer who has been assigned a contribution rate
pursuant to subsection (c) of this section for the year commencing July 1,
1948, and for any year commencing July 1 thereafter, may voluntarily make
payment of additional contributions, and upon such payment shall receive a
recomputation of the experience rate applicable to such employer, including in
the calculation the additional contribution so made, except that, following a
transfer as described under R.S.43:21-7(c)(7)(D), neither the predecessor nor
successor in interest shall be eligible to make a voluntary payment of
additional contributions during the year the transfer occurs and the next full
calendar year. Any such additional contribution shall be made during the 30-day
period following the notification to the employer of his contribution rate as
prescribed in this section, unless, for good cause, the time for payment has
been extended by the controller for not to exceed an additional 60 days; provided
that in no event may such payments which are made later than 120 days after the
beginning of the year for which such rates are effective be considered in
determining the experience rate for the year in which the payment is made. Any
employer receiving any extended period of time within which to make such
additional payment and failing to make such payment timely shall be, in
addition to the required amount of additional payment, liable for a penalty of
5% thereof or $5.00, whichever is greater, not to exceed $50.00. Any adjustment
under this subsection shall be made only in the form of credits against accrued
or future contributions.

���� (7)�� Transfers.

���� (A)� Upon the transfer of the
organization, trade or business, or substantially all the assets of an employer
to a successor in interest, whether by merger, consolidation, sale, transfer,
descent or otherwise, the controller shall transfer the employment experience
of the predecessor employer to the successor in interest, including credit for
past years, contributions paid, annual payrolls, benefit charges, et cetera,
applicable to such predecessor employer, pursuant to regulation, if it is
determined that the employment experience of the predecessor employer with
respect to the organization, trade, assets or business which has been
transferred may be considered indicative of the future employment experience of
the successor in interest.� The successor in interest may, within four months
of the date of such transfer of the organization, trade, assets or business, or
thereafter upon good cause shown, request a reconsideration of the transfer of
employment experience of the predecessor employer.� The request for reconsideration
shall demonstrate, to the satisfaction of the controller, that the employment
experience of the predecessor is not indicative of the future employment
experience of the successor.

���� (B)� An employer who transfers
part of his or its organization, trade, assets or business to a successor in
interest, whether by merger, consolidation, sale, transfer, descent or
otherwise, may jointly make application with such successor in interest for
transfer of that portion of the employment experience of the predecessor
employer relating to the portion of the organization, trade, assets or business
transferred to the successor in interest, including credit for past years,
contributions paid, annual payrolls, benefit charges, et cetera, applicable to
such predecessor employer. The transfer of employment experience may be allowed
pursuant to regulation only if it is found that the employment experience of
the predecessor employer with respect to the portion of the organization,
trade, assets or business which has been transferred may be considered
indicative of the future employment experience of the successor in interest.�
Credit shall be given to the successor in interest only for the years during
which contributions were paid by the predecessor employer with respect to that
part of the organization, trade, assets or business transferred.

���� (C)� A transfer of the
employment experience in whole or in part having become final, the predecessor
employer thereafter shall not be entitled to consideration for an adjusted rate
based upon his or its experience or the part thereof, as the case may be, which
has thus been transferred.� A successor in interest to whom employment
experience or a part thereof is transferred pursuant to this subsection shall,
as of the date of the transfer of the organization, trade, assets or business,
or part thereof, immediately become an employer if not theretofore an employer
subject to this chapter (R.S.43:21-1 et seq.).

���� (D)� If an employer transfers
in whole or in part his or its organization, trade, assets or business to a
successor in interest, whether by merger, consolidation, sale, transfer,
descent or otherwise and both the employer and successor in interest are at the
time of the transfer under common ownership, management or control, then the
employment experience attributable to the transferred business shall also be
transferred to and combined with the employment experience of the successor in
interest.� The transfer of the employment experience is mandatory and not
subject to appeal or protest.

���� (E)� The transfer of part of
an employer's employment experience to a successor in interest shall become
effective as of the first day of the calendar quarter following the acquisition
by the successor in interest.� As of the effective date, the successor in interest
shall have its employer rate recalculated by merging its existing employment
experience, if any, with the employment experience acquired.� If the successor
in interest is not an employer as of the date of acquisition, it shall be
assigned the new employer rate until the effective date of the transfer of
employment experience.

���� (F)�� Upon the transfer in
whole or in part of the organization, trade, assets or business to a successor
in interest, the employment experience shall not be transferred if the
successor in interest is not an employer at the time of the acquisition and the
controller finds that the successor in interest acquired the business solely or
primarily for the purpose of obtaining a lower rate of contributions.

���� (d)�� Contributions of workers
to the unemployment compensation fund and the State disability benefits fund.

���� (1)� (A)� For periods after
January 1, 1975, each worker shall contribute to the fund 1% of his wages with
respect to his employment with an employer, which occurs on and after January
1, 1975, after such employer has satisfied the condition set forth in
subsection (h) of R.S.43:21-19 with respect to becoming an employer; provided,
however, that such contributions shall be at the rate of 1/2 of 1% of wages
paid with respect to employment while the worker is in the employ of the State
of New Jersey, or any governmental entity or instrumentality which is an
employer as defined under R.S.43:21-19(h)(5), or is covered by an approved
private plan under the "Temporary Disability Benefits Law" or while
the worker is exempt from the provisions of the "Temporary Disability
Benefits Law" under section 7 of that law, P.L.1948, c.110 (C.43:21-31).

���� (B)� Effective January 1, 1978
there shall be no contributions by workers in the employ of any governmental or
nongovernmental employer electing or required to make payments in lieu of
contributions unless the employer is covered by the State plan under the "Temporary
Disability Benefits Law" (C.43:21-25 et al.), and in that case
contributions shall be at the rate of 1/2 of 1%, except that commencing July 1,
1986, workers in the employ of any nongovernmental employer electing or
required to make payments in lieu of contributions shall be required to make
contributions to the fund at the same rate prescribed for workers of other
nongovernmental employers.

���� (C)� (i) Notwithstanding the
above provisions of this paragraph (1), during the period starting July 1, 1986
and ending December 31, 1992, each worker shall contribute to the fund 1.125%
of wages paid with respect to his employment with a governmental employer
electing or required to pay contributions or nongovernmental employer,
including a nonprofit organization which is an employer as defined under
R.S.43:21-19(h)(6), regardless of whether that nonprofit organization elects or
is required to finance its benefit costs with contributions to the fund or by
payments in lieu of contributions, after that employer has satisfied the
conditions set forth in subsection R.S.43:21-19(h) with respect to becoming an
employer.� Contributions, however, shall be at the rate of 0.625% while the
worker is covered by an approved private plan under the "Temporary
Disability Benefits Law" or while the worker is exempt under section 7 of
that law, P.L.1948, c.110 (C.43:21-31) or any other provision of that law; provided
that such contributions shall be at the rate of 0.625% of wages paid with
respect to employment with the State of New Jersey or any other governmental
entity or instrumentality electing or required to make payments in lieu of
contributions and which is covered by the State plan under the "Temporary
Disability Benefits Law," except that, while the worker is exempt from the
provisions of the "Temporary Disability Benefits Law" under section 7
of that law, P.L.1948, c.110 (C.43:21-31) or any other provision of that law,
or is covered for disability benefits by an approved private plan of the
employer, the contributions to the fund shall be 0.125%.

���� (ii)�� (Deleted by amendment,
P.L.1995, c.422.)

���� (D)� Notwithstanding any other
provisions of this paragraph (1), during the period starting January 1, 1993
and ending June 30, 1994, each worker shall contribute to the unemployment
compensation fund 0.5% of wages paid with respect to the worker's employment
with a governmental employer electing or required to pay contributions or
nongovernmental employer, including a nonprofit organization which is an
employer as defined under paragraph (6) of subsection (h) of R.S.43:21-19,
regardless of whether that nonprofit organization elects or is required to
finance its benefit costs with contributions to the fund or by payments in lieu
of contributions, after that employer has satisfied the conditions set forth in
subsection (h) of R.S.43:21-19 with respect to becoming an employer.� No
contributions, however, shall be made by the worker while the worker is covered
by an approved private plan under the "Temporary Disability Benefits
Law," P.L.1948, c.110 (C.43:21-25 et al.) or while the worker is exempt
under section 7 of P.L.1948, c.110 (C.43:21-31) or any other provision of that
law; provided that the contributions shall be at the rate of 0.50% of wages
paid with respect to employment with the State of New Jersey or any other
governmental entity or instrumentality electing or required to make payments in
lieu of contributions and which is covered by the State plan under the
"Temporary Disability Benefits Law," except that, while the worker is
exempt from the provisions of the "Temporary Disability Benefits Law"
under section 7 of that law, P.L.1948, c.110 (C.43:21-31) or any other
provision of that law, or is covered for disability benefits by an approved
private plan of the employer, no contributions shall be made to the fund.

���� Each worker shall, starting on
January 1, 1996 and ending March 31, 1996, contribute to the unemployment
compensation fund 0.60% of wages paid with respect to the worker's employment
with a governmental employer electing or required to pay contributions or
nongovernmental employer, including a nonprofit organization which is an
employer as defined under paragraph (6) of subsection (h) of R.S.43:21-19,
regardless of whether that nonprofit organization elects or is required to
finance its benefit costs with contributions to the fund or by payments in lieu
of contributions, after that employer has satisfied the conditions set forth in
subsection (h) of R.S.43:21-19 with respect to becoming an employer, provided
that the contributions shall be at the rate of 0.10% of wages paid with respect
to employment with the State of New Jersey or any other governmental entity or
instrumentality electing or required to make payments in lieu of contributions.

���� Each worker shall, starting on
January 1, 1998 and ending December 31, 1998, contribute to the unemployment
compensation fund 0.10% of wages paid with respect to the worker's employment
with a governmental employer electing or required to pay contributions or
nongovernmental employer, including a nonprofit organization which is an
employer as defined under paragraph (6) of subsection (h) of R.S.43:21-19,
regardless of whether that nonprofit organization elects or is required to
finance its benefit costs with contributions to the fund or by payments in lieu
of contributions, after that employer has satisfied the conditions set forth in
subsection (h) of R.S.43:21-19 with respect to becoming an employer, provided
that the contributions shall be at the rate of 0.10% of wages paid with respect
to employment with the State of New Jersey or any other governmental entity or
instrumentality electing or required to make payments in lieu of contributions.

���� Each worker shall, starting on
January 1, 1999 until December 31, 1999, contribute to the unemployment
compensation fund 0.15% of wages paid with respect to the worker's employment
with a governmental employer electing or required to pay contributions or
nongovernmental employer, including a nonprofit organization which is an
employer as defined under paragraph (6) of subsection (h) of R.S.43:21-19,
regardless of whether that nonprofit organization elects or is required to
finance its benefit costs with contributions to the fund or by payments in lieu
of contributions, after that employer has satisfied the conditions set forth in
subsection (h) of R.S.43:21-19 with respect to becoming an employer, provided
that the contributions shall be at the rate of 0.10% of wages paid with respect
to employment with the State of New Jersey or any other governmental entity or
instrumentality electing or required to make payments in lieu of contributions.

���� Each worker shall, starting on
January 1, 2000 until December 31, 2001, contribute to the unemployment
compensation fund 0.20% of wages paid with respect to the worker's employment
with a governmental employer electing or required to pay contributions or
nongovernmental employer, including a nonprofit organization which is an
employer as defined under paragraph (6) of subsection (h) of R.S.43:21-19,
regardless of whether that nonprofit organization elects or is required to
finance its benefit costs with contributions to the fund or by payments in lieu
of contributions, after that employer has satisfied the conditions set forth in
subsection (h) of R.S.43:21-19 with respect to becoming an employer, provided
that the contributions shall be at the rate of 0.10% of wages paid with respect
to employment with the State of New Jersey or any other governmental entity or
instrumentality electing or required to make payments in lieu of contributions.

���� Each worker shall, starting on
January 1, 2002 until June 30, 2004, contribute to the unemployment
compensation fund 0.1825% of wages paid with respect to the worker's employment
with a governmental employer electing or required to pay contributions or a
nongovernmental employer, including a nonprofit organization which is an
employer as defined under paragraph (6) of subsection (h) of R.S.43:21-19,
regardless of whether that nonprofit organization elects or is required to
finance its benefit costs with contributions to the fund or by payments in lieu
of contributions, after that employer has satisfied the conditions set forth in
subsection (h) of R.S.43:21-19 with respect to becoming an employer, provided
that the contributions shall be at the rate of 0.0825% of wages paid with
respect to employment with the State of New Jersey or any other governmental
entity or instrumentality electing or required to make payments in lieu of
contributions.

���� Each worker shall, starting on
and after July 1, 2004, contribute to the unemployment compensation fund
0.3825% of wages paid with respect to the worker's employment with a
governmental employer electing or required to pay contributions or
nongovernmental employer, including a nonprofit organization which is an
employer as defined under paragraph (6) of subsection (h) of R.S.43:21-19,
regardless of whether that nonprofit organization elects or is required to
finance its benefit costs with contributions to the fund or by payments in lieu
of contributions, after that employer has satisfied the conditions set forth in
subsection (h) of R.S.43:21-19 with respect to becoming an employer, provided
that the contributions shall be at the rate of 0.0825% of wages paid with
respect to employment with the State of New Jersey or any other governmental
entity or instrumentality electing or required to make payments in lieu of
contributions.

���� (E)� Each employer shall,
notwithstanding any provision of law in this State to the contrary, withhold in
trust the amount of his workers' contributions from their wages at the time
such wages are paid, shall show such deduction on his payroll records, shall furnish
such evidence thereof to his workers as the division or controller may
prescribe, and shall transmit all such contributions, in addition to his own
contributions, to the office of the controller in such manner and at such times
as may be prescribed.� If any employer fails to deduct the contributions of any
of his workers at the time their wages are paid, or fails to make a deduction
therefor at the time wages are paid for the next succeeding payroll period, he
alone shall thereafter be liable for such contributions, and for the purpose of
R.S.43:21-14, such contributions shall be treated as employer's contributions
required from him.

���� (F)�� As used in this chapter
(R.S.43:21-1 et seq.), except when the context clearly requires otherwise, the
term "contributions" shall include the contributions of workers
pursuant to this section.

���� (G)� (i)� Each worker, with
respect to the worker's employment with a government employer electing or
required to pay contributions to the State disability benefits fund or
nongovernmental employer, including a nonprofit organization which is an
employer as defined under paragraph (6) of subsection (h) of R.S.43:21-19,
unless the employer is covered by an approved private disability plan or is
exempt from the provisions of the "Temporary Disability Benefits
Law," P.L.1948, c.110 (C.43:21-25 et al.) under section 7 of that law
(C.43:21-31) or any other provision of that law, shall, for calendar year 2012
and each subsequent calendar year, make contributions to the State disability
benefits fund at the annual rate of contribution necessary to obtain a total
amount of contributions, which, when added to employer contributions made to
the State disability benefits fund pursuant to subsection (e) of this section,
is, for calendar years prior to calendar year 2018, equal to 120% of the
benefits paid for periods of disability, excluding periods of family temporary
disability, during the immediately preceding calendar year plus an amount equal
to 100% of the cost of administration of the payment of those benefits during
the immediately preceding calendar year, less the amount of net assets
remaining in the State disability benefits fund, excluding net assets remaining
in the "Family Temporary Disability Leave Account" of that fund, as
of December 31 of the immediately preceding year, and is, for calendar year
2018 and year 2019, equal to 120% of the benefits paid for periods of
disability, excluding periods of family temporary disability, during the last
preceding full fiscal year plus an amount equal to 100% of the cost of
administration of the payment of those benefits during the last preceding full
fiscal year, less the amount of net assets anticipated to be remaining in the
"Family Temporary Disability Leave Account" of that fund, as of
December 31 of the immediately preceding calendar year, and is, for each of
calendar years 2020 and 2021, equal to 120% of the benefits which the
department anticipates will be paid for periods of disability, excluding
periods of family temporary disability, during the respective calendar year
plus an amount equal to 100% of the cost of administration of the payment of
those benefits which the department anticipates during the respective calendar
year, less the amount of net assets anticipated to be remaining in the State
disability benefits fund, excluding net assets remaining in the "Family
Temporary Disability Leave Account" of that fund, as of December 31 of the
immediately preceding calendar year, and is, for calendar year 2022 and any
subsequent calendar year, equal to 120% of the benefits paid for periods of
disability, excluding periods of family temporary disability, during the last
preceding full fiscal year plus an amount equal to 100% of the cost of
administration of the payment of those benefits during the last preceding full
fiscal year, less the amount of net assets anticipated to be remaining in the
State disability benefits fund, excluding net assets remaining in the
"Family Temporary Disability Leave Account" of that fund, as of
December 31 of the immediately preceding calendar year.� All increases in the
cost of benefits for periods of disability caused by the increases in the
weekly benefit rate commencing July 1, 2020, pursuant to section 16 of
P.L.1948, c.110 (C.43:21-40), shall be funded by contributions made by workers
pursuant to this paragraph (i) and none of those increases shall be funded by
employer contributions.� The estimated rates for the next calendar year shall
be made available on the department's website no later than 60 days after the
end of the last preceding full fiscal year.� The rates of employer contributions
determined pursuant to subsection (e) of this section for any year shall be
determined prior to the determination of the rate of employee contributions
pursuant to this subparagraph (i) and any consideration of employee
contributions in determining employer rates for any year shall be based on
amounts of employee contributions made prior to the year to which the rate of
employee contributions applies and shall not be based on any projection or
estimate of the amount of employee contributions for the year to which that
rate applies.

���� (ii)�� Each worker shall
contribute to the State disability benefits fund, in addition to any amount
contributed pursuant to subparagraph (i) of this paragraph (1)(G), an amount
equal to, during calendar year 2009, 0.09%, and during calendar year 2010
0.12%, of wages paid with respect to the worker's employment with any covered
employer, including a governmental employer which is an employer as defined
under R.S.43:21-19(h)(5), unless the employer is covered by an approved private
disability plan for benefits during periods of family temporary disability
leave.� The contributions made pursuant to this subparagraph (ii) to the State
disability benefits fund shall be deposited into an account of that fund
reserved for the payment of benefits during periods of family temporary
disability leave as defined in section 3 of the "Temporary Disability
Benefits Law," P.L.1948, c.110 (C.43:21-27) and for the administration of
those payments and shall not be used for any other purpose.� This account shall
be known as the "Family Temporary Disability Leave Account."� For
calendar year 2011 and each subsequent calendar year until 2018, the annual
rate of contribution to be paid by workers pursuant to this subparagraph (ii)
shall be, for calendar years prior to calendar year 2018, the rate necessary to
obtain a total amount of contributions equal to 125% of the benefits paid for
periods of family temporary disability leave during the immediately preceding
calendar year plus an amount equal to 100% of the cost of administration of the
payment of those benefits during the immediately preceding calendar year, less
the amount of net assets remaining in the account as of December 31 of the
immediately preceding year, and shall be, for calendar year 2018 and calendar
year 2019, the rate necessary to obtain a total amount of contributions equal
to 125% of the benefits paid for periods of family temporary disability leave
during the last preceding full fiscal year plus an amount equal to 100% of the
cost of administration of the payment of those benefits during the last
preceding full fiscal year, less the amount of net assets anticipated to be
remaining in the account as of December 31 of the immediately preceding
calendar year.� For each of calendar years 2020 and 2021, the annual rate of
contribution to be paid by workers pursuant to this subparagraph (ii) shall be
the rate necessary to obtain a total amount of contributions equal to 125% of
the benefits which the department anticipates will be paid for periods of
family temporary disability leave during the respective calendar year plus an
amount equal to 100% of the cost of administration of the payment of those
benefits which the department anticipates during the respective calendar year,
less the amount of net assets remaining in the account as of December 31 of the
immediately preceding calendar year.� For 2022 and any subsequent calendar
year, the annual rate of contribution to be paid by workers pursuant to this
subparagraph (ii) shall be the rate necessary to obtain a total amount of contributions
equal to 125% of the benefits which were paid for periods of family temporary
disability leave during the last preceding full fiscal year plus an amount
equal to 100% of the cost of administration of the payment of those benefits
during the last preceding full fiscal year, less the amount of net assets
remaining in the account as of December 31 of the immediately preceding
calendar year.� All increases in the cost of benefits for periods of family
temporary disability leave caused by the increases in the weekly benefit rate
commencing July 1, 2020 pursuant to section 16 of P.L.1948, c.110 (C.43:21-40)
and increases in the maximum duration of benefits commencing July 1, 2020
pursuant to sections 14 and 15 of P.L.1948, c.110 (C.43:21-38 and 43:21-39)
shall be funded by contributions made by workers pursuant to this paragraph
(ii) and none of those increases shall be funded by employer contributions.�
The estimated rates for the next calendar year shall be made available on the
department's website no later than 60 days after the end of the last preceding
full fiscal year.� Necessary administrative costs shall include the cost of an
outreach program to inform employees of the availability of the benefits and
the cost of issuing the reports required or permitted pursuant to section 13 of
P.L.2008, c.17 (C.43:21-39.4).� No monies, other than the funds in the
"Family Temporary Disability Leave Account," shall be used for the
payment of benefits during periods of family temporary disability leave or for the
administration of those payments, with the sole exception that, during calendar
years 2008 and 2009, a total amount not exceeding $25 million may be
transferred to that account from the revenues received in the State disability
benefits fund pursuant to subparagraph (i) of this paragraph (1)(G) and be
expended for those payments and their administration, including the
administration of the collection of contributions made pursuant to this
subparagraph (ii) and any other necessary administrative costs.� Any amount
transferred to the account pursuant to this subparagraph (ii) shall be repaid
during a period beginning not later than January 1, 2011 and ending not later
than December 31, 2015.� No monies, other than the funds in the "Family
Temporary Disability Leave Account," shall be used under any circumstances
after December 31, 2009, for the payment of benefits during periods of family
temporary disability leave or for the administration of those payments,
including for the administration of the collection of contributions made
pursuant to this subparagraph (ii).

���� (2)� (A) (Deleted by
amendment, P.L.1984, c.24.)

���� (B)� (Deleted by amendment,
P.L.1984, c.24.)

���� (C)� (Deleted by amendment,
P.L.1994, c.112.)

���� (D)� (Deleted by amendment,
P.L.1994, c.112.)

���� (E)� (i) (Deleted by
amendment, P.L.1994, c.112.)

���� (ii)�� (Deleted by amendment,
P.L.1996, c.28.)

���� (iii)� (Deleted by amendment,
P.L.1994, c.112.)

���� (3)� (A)� If an employee
receives wages from more than one employer during any calendar year, and either
the sum of his contributions deposited in and credited to the State disability
benefits fund plus the amount of his contributions, if any, required towards
the costs of benefits under one or more approved private plans under the
provisions of section 9 of the "Temporary Disability Benefits Law"
(C.43:21-33) and deducted from his wages, or the sum of such latter
contributions, if the employee is covered during such calendar year only by two
or more private plans, exceeds an amount equal to 1/2 of 1% of the
"wages" determined in accordance with the provisions of
R.S.43:21-7(b)(3) during the calendar years beginning on or after January 1,
1976 or, during calendar year 2012 or any subsequent calendar year, the total
amount of his contributions for the year exceeds the amount set by the annual
rate of contribution determined by the Commissioner of Labor and Workforce
Development pursuant to subparagraph (i) of paragraph (1)(G) of this subsection
(d), the employee shall be entitled to a refund of the excess if he makes a
claim to the controller within two years after the end of the calendar year in
which the wages are received with respect to which the refund is claimed and
establishes his right to such refund. Such refund shall be made by the
controller from the State disability benefits fund. No interest shall be
allowed or paid with respect to any such refund. The controller shall, in
accordance with prescribed regulations, determine the portion of the aggregate
amount of such refunds made during any calendar year which is applicable to
private plans for which deductions were made under section 9 of the
"Temporary Disability Benefits Law" (C.43:21-33) such determination
to be based upon the ratio of the amount of such wages exempt from
contributions to such fund, as provided in subparagraph (B) of paragraph (1) of
this subsection with respect to coverage under private plans, to the total
wages so exempt plus the amount of such wages subject to contributions to the
disability benefits fund, as provided in subparagraph (G) of paragraph (1) of
this subsection. The controller shall, in accordance with prescribed
regulations, prorate the amount so determined among the applicable private
plans in the proportion that the wages covered by each plan bear to the total
private plan wages involved in such refunds, and shall assess against and
recover from the employer, or the insurer if the insurer has indemnified the
employer with respect thereto, the amount so prorated. The provisions of
R.S.43:21-14 with respect to collection of employer contributions shall apply
to such assessments. The amount so recovered by the controller shall be paid
into the State disability benefits fund.

���� (B)� If an employee receives
wages from more than one employer during any calendar year, and the sum of his
contributions deposited in the "Family Temporary Disability Leave
Account" of the State disability benefits fund plus the amount of his
contributions, if any, required towards the costs of family temporary
disability leave benefits under one or more approved private plans under the
provisions of the "Temporary Disability Benefits Law" (C.43:21-25 et
al.) and deducted from his wages, exceeds an amount equal to, during calendar
year 2009, 0.09% of the "wages" determined in accordance with the
provisions of R.S.43:21-7(b)(3), or during calendar year 2010, 0.12% of those
wages, or, during calendar year 2011 or any subsequent calendar year, the percentage
of those wages set by the annual rate of contribution determined by the
Commissioner of Labor and Workforce Development pursuant to subparagraph (ii)
of paragraph (1)(G) of this subsection (d), the employee shall be entitled to a
refund of the excess if he makes a claim to the controller within two years
after the end of the calendar year in which the wages are received with respect
to which the refund is claimed and establishes his right to the refund. The
refund shall be made by the controller from the "Family Temporary
Disability Leave Account" of the State disability benefits fund. No
interest shall be allowed or paid with respect to any such refund. The
controller shall, in accordance with prescribed regulations, determine the
portion of the aggregate amount of the refunds made during any calendar year
which is applicable to private plans for which deductions were made under
section 9 of the "Temporary Disability Benefits Law" (C.43:21-33),
with that determination based upon the ratio of the amount of such wages exempt
from contributions to the fund, as provided in paragraph (1)(B) of this
subsection (d) with respect to coverage under private plans, to the total wages
so exempt plus the amount of such wages subject to contributions to the "Family
Temporary Disability Leave Account" of the State disability benefits fund,
as provided in subparagraph (ii) of paragraph (1)(G) of this subsection (d).
The controller shall, in accordance with prescribed regulations, prorate the
amount so determined among the applicable private plans in the proportion that
the wages covered by each plan bear to the total private plan wages involved in
such refunds, and shall assess against and recover from the employer, or the
insurer if the insurer has indemnified the employer with respect thereto, the
prorated amount. The provisions of R.S.43:21-14 with respect to collection of
employer contributions shall apply to such assessments. The amount so recovered
by the controller shall be paid into the "Family Temporary Disability Leave
Account" of the State disability benefits fund.

���� (4)�� If an individual does
not receive any wages from the employing unit which for the purposes of this
chapter (R.S.43:21-1 et seq.) is treated as his employer, or receives his wages
from some other employing unit, such employer shall nevertheless be liable for
such individual's contributions in the first instance; and after payment
thereof such employer may deduct the amount of such contributions from any sums
payable by him to such employing unit, or may recover the amount of such
contributions from such employing unit, or, in the absence of such an employing
unit, from such individual, in a civil action; provided proceedings therefor
are instituted within three months after the date on which such contributions
are payable. General rules shall be prescribed whereby such an employing unit
may recover the amount of such contributions from such individuals in the same
manner as if it were the employer.

���� (5)�� Every employer who has
elected to become an employer subject to this chapter (R.S.43:21-1 et seq.), or
to cease to be an employer subject to this chapter (R.S.43:21-1 et seq.),
pursuant to the provisions of R.S.43:21-8, shall post and maintain printed notices
of such election on his premises, of such design, in such numbers, and at such
places as the director may determine to be necessary to give notice thereof to
persons in his service.

���� (6)�� Contributions by
workers, payable to the controller as herein provided, shall be exempt from
garnishment, attachment, execution, or any other remedy for the collection of
debts.

���� (e)�� Contributions by
employers to the State disability benefits fund.

���� (1)�� Except as hereinafter
provided, each employer shall, in addition to the contributions required by
subsections (a), (b), and (c) of this section, contribute 1/2 of 1% of the
wages paid by such employer to workers with respect to employment unless he is
not a covered employer as defined in subsection (a) of section 3 of the
"Temporary Disability Benefits Law" (C.43:21-27 (a)), except that the
rate for the State of New Jersey shall be 1/10 of 1% for the calendar year 1980
and for the first six months of 1981. Prior to July 1, 1981 and prior to July 1
each year thereafter, the controller shall review the experience accumulated in
the account of the State of New Jersey and establish a rate for the next
following fiscal year which, in combination with worker contributions, will
produce sufficient revenue to keep the account in balance; except that the rate
so established shall not be less than 1/10 of 1%. Such contributions shall
become due and be paid by the employer to the controller for the State
disability benefits fund as established by law, in accordance with such
regulations as may be prescribed, and shall not be deducted, in whole or in
part, from the remuneration of individuals in his employ. In the payment of any
contributions, a fractional part of a cent shall be disregarded unless it
amounts to $0.005 or more, in which case it shall be increased to $0.01.

���� (2)�� During the continuance
of coverage of a worker by an approved private plan of disability benefits
under the "Temporary Disability Benefits Law," the employer shall be
exempt from the contributions required by paragraph (1) above with respect to
wages paid to such worker.

���� (3)� (A)� The rates of
contribution as specified in paragraph (1) above shall be subject to
modification as provided herein with respect to employer contributions due on
and after July 1, 1951.

���� (B)� A separate disability
benefits account shall be maintained for each employer required to contribute
to the State disability benefits fund and such account shall be credited with
contributions deposited in and credited to such fund with respect to employment
occurring on and after January 1, 1949. Each employer's account shall be
credited with all contributions paid on or before January 31 of any calendar
year on his own behalf and on behalf of individuals in his service with respect
to employment occurring in preceding calendar years; provided, however, that if
January 31 of any calendar year falls on a Saturday or Sunday an employer's
account shall be credited as of January 31 of such calendar year with all the
contributions which he has paid on or before the next succeeding day which is
not a Saturday or Sunday. But nothing in this act shall be construed to grant
any employer or individuals in his service prior claims or rights to the
amounts paid by him to the fund either on his own behalf or on behalf of such
individuals. Benefits paid to any covered individual in accordance with Article
III of the "Temporary Disability Benefits Law" on or before December
31 of any calendar year with respect to disability in such calendar year and in
preceding calendar years shall be charged against the account of the employer
by whom such individual was employed at the commencement of such disability or
by whom he was last employed, if out of employment.

���� (C)� The controller may
prescribe regulations for the establishment, maintenance, and dissolution of
joint accounts by two or more employers, and shall, in accordance with such
regulations and upon application by two or more employers to establish such an
account, or to merge their several individual accounts in a joint account,
maintain such joint account as if it constituted a single employer's account.

���� (D)� Prior to July 1 of each
calendar year, the controller shall make a preliminary determination of the
rate of contribution for the 12 months commencing on such July 1 for each
employer subject to the contribution requirements of this subsection (e).

���� (1)�� Such preliminary rate
shall be 1/2 of 1% unless on the preceding January 31 of such year such
employer shall have been a covered employer who has paid contributions to the
State disability benefits fund with respect to employment in the three calendar
years immediately preceding such year.

���� (2)�� If the minimum
requirements in subparagraph (D) (1) above have been fulfilled and the credited
contributions exceed the benefits charged by more than $500.00, such
preliminary rate shall be as follows:

���� (i)��� 2/10 of 1% if such
excess over $500.00 exceeds 1% but is less than 1 1/4% of his average annual
payroll as defined in this chapter (R.S.43:21-1 et seq.);

���� (ii)�� 15/100 of 1% if such
excess over $500.00 equals or exceeds 1 1/4% but is less than 1 1/2% of his
average annual payroll;

���� (iii) 1/10 of 1% if such
excess over $500.00 equals or exceeds 1 1/2% of his average annual payroll.

���� (3)�� If the minimum
requirements in subparagraph (D) (1) above have been fulfilled and the
contributions credited exceed the benefits charged but by not more than $500.00
plus 1% of his average annual payroll, or if the benefits charged exceed the
contributions credited but by not more than $500.00, the preliminary rate shall
be 1/4 of 1%.

���� (4)�� If the minimum
requirements in subparagraph (D) (1) above have been fulfilled and the benefits
charged exceed the contributions credited by more than $500.00, such
preliminary rate shall be as follows:

���� (i)��� 35/100 of 1% if such
excess over $500.00 is less than 1/4 of 1% of his average annual payroll;

���� (ii)�� 45/100 of 1% if such
excess over $500.00 equals or exceeds 1/4 of 1% but is less than 1/2 of 1% of
his average annual payroll;

���� (iii) 55/100 of 1% if such
excess over $500.00 equals or exceeds 1/2 of 1% but is less than 3/4 of 1% of
his average annual payroll;

���� (iv)� 65/100 of 1% if such
excess over $500.00 equals or exceeds 3/4 of 1% but is less than 1% of his
average annual payroll;

���� (v)�� 75/100 of 1% if such
excess over $500.00 equals or exceeds 1% of his average annual payroll.

���� (5)�� Determination of the
preliminary rate as specified in subparagraphs (D)(2), (3) and (4) above shall
be subject, however, to the condition that it shall in no event be decreased by
more than 1/10 of 1% of wages or increased by more than 2/10 of 1% of wages
from the preliminary rate determined for the preceding year in accordance with
subparagraph (D) (1), (2), (3) or (4), whichever shall have been applicable.

���� (E)� (1)� Prior to July 1 of
each calendar year the controller shall determine the amount of the State
disability benefits fund as of December 31 of the preceding calendar year,
increased by the contributions paid thereto during January of the current calendar
year with respect to employment occurring in the preceding calendar year. If
such amount exceeds the net amount withdrawn from the unemployment trust fund
pursuant to section 23 of the "Temporary Disability Benefits Law,"
P.L.1948, c.110 (C.43:21-47) plus the amount at the end of such preceding
calendar year of the unemployment disability account as defined in section 22
of said law (C.43:21-46), such excess shall be expressed as a percentage of the
wages on which contributions were paid to the State disability benefits fund on
or before January 31 with respect to employment in the preceding calendar year.

���� (2)�� The controller shall
then make a final determination of the rates of contribution for the 12 months
commencing July 1 of such year for employers whose preliminary rates are
determined as provided in subparagraph (D) hereof, as follows:

���� (i)��� If the percentage
determined in accordance with subparagraph (E)(1) of this paragraph equals or
exceeds 1 1/4%, the final employer rates shall be the preliminary rates
determined as provided in subparagraph (D) hereof, except that if the
employer's preliminary rate is determined as provided in subparagraph (D)(2) or
subparagraph (D)(3) hereof, the final employer rate shall be the preliminary
employer rate decreased by such percentage of excess taken to the nearest 5/100
of 1%, but in no case shall such final rate be less than 1/10 of 1%.

���� (ii)�� If the percentage
determined in accordance with subparagraph (E)(1) of this paragraph equals or
exceeds 3/4 of 1% and is less than 1 1/4 of 1%, the final employer rates shall
be the preliminary employer rates.

���� (iii) If the percentage
determined in accordance with subparagraph (E)(1) of this paragraph is less
than 3/4 of 1%, but in excess of 1/4 of 1%, the final employer rates shall be
the preliminary employer rates determined as provided in subparagraph (D) hereof
increased by the difference between 3/4 of 1% and such percentage taken to the
nearest 5/100 of 1%; provided, however, that no such final rate shall be more
than 1/4 of 1% in the case of an employer whose preliminary rate is determined
as provided in subparagraph (D)(2) hereof, more than 1/2 of 1% in the case of
an employer whose preliminary rate is determined as provided in subparagraph
(D)(1) and subparagraph (D)(3) hereof, nor more than 3/4 of 1% in the case of
an employer whose preliminary rate is determined as provided in subparagraph
(D)(4) hereof.

���� (iv)� If the amount of the
State disability benefits fund determined as provided in subparagraph (E)(1) of
this paragraph is equal to or less than 1/4 of 1%, then the final rate shall be
2/5 of 1% in the case of an employer whose preliminary rate is determined as
provided in subparagraph (D)(2) hereof, 7/10 of 1% in the case of an employer
whose preliminary rate is determined as provided in subparagraph (D)(1) and
subparagraph (D)(3) hereof, and 1.1% in the case of an employer whose
preliminary rate is determined as provided in subparagraph (D)(4) hereof.
Notwithstanding any other provision of law or any determination made by the
controller with respect to any 12-month period commencing on July 1, 1970, the
final rates for all employers for the period beginning January 1, 1971, shall
be as set forth herein.

���� (F)�� Notwithstanding any
other provisions of this subsection (e), the rate of contribution paid to the
State disability benefits fund by each covered employer as defined in paragraph
(1) of subsection (a) of section 3 of P.L.1948, c.110 (C.43:21-27), shall be
determined as if:

���� (i)��� No disability benefits
have been paid with respect to periods of family temporary disability leave;

���� (ii)�� No worker paid any
contributions to the State disability benefits fund pursuant to paragraph
(1)(G)(ii) of subsection (d) of this section;

���� (iii)� No amounts were
transferred from the State disability benefits fund to the "Family
Temporary Disability Leave Account" pursuant to paragraph (1)(G)(ii) of
subsection (d) of this section; and

���� (iv)� The total amount of
benefits paid for periods of disability were not subject to the increases in
the weekly benefit rate for those benefits commencing July 1, 2020 pursuant to
section 16 of P.L.1948, c.110 (C.43:21-40).

(cf: P.L.2024, c.102, s.5)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill reduces the taxable
wage base applied to certain payroll tax contributions made by employers and
employees.� Current law establishes the level of wages subject to tax
contributions required under the unemployment insurance, temporary disability
insurance, and family leave insurance programs, as well as under the Workforce
Development Partnership Fund and the Supplemental Workforce Fund for Basic
Skills.� For calendar year 2021, the taxable wage base for these programs is
$36,200.� Under current law, the taxable wage amount is determined annually by
the Commissioner of Labor and Workforce Development by multiplying the
Statewide average weekly wage by 28.

���� This bill reduces the taxable
wage base applied to these payroll tax contributions by requiring the
commissioner to determine the taxable wage amount by multiplying the Statewide
average weekly wage by 14, rather than 28.� The bill provides that if the taxable
wage amount determined by the commissioner in any given year is less than the
taxable wage amount determined for the preceding year, the greater amount will
be used.� In effect, the bill reduces the taxable wage amount applied to tax
contributions paid by employers and employees by approximately half beginning
on January 1, 2022.