New Jersey Delays Unemployment-Triggered Payroll Tax Hike

New Jersey is delaying an automatic payroll tax increase, triggered by the rapid dry-up in the state’s unemployment fund.

Gov. Phil Murphy (D) signed legislation (A-4853/S-3011) that substitutes incremental payroll tax increases over a three-year period for a payroll tax hike scheduled for July, he announced late Monday. By design the tax would have gone up to shore up the state’s unemployment fund, which was drained by over $16.2 billion during the pandemic, according to the Department of Labor and Workforce Development.

The pandemic “continues to pose economic challenges to businesses across the state,” Murphy said. ...