Governor Signs Law Providing New Jersey Employee Leasing Companies With Choice For Unemployment Insurance Taxes

In the January 2014 issue of the New Jersey eAuthority, we reported that the Senate had introduced a bill (S3087) that would permit employee leasing companies to have their unemployment insurance taxes determined on the basis of their client company’s experience rating. Governor Chris Christie signed the bill into law on January 17, 2014 and it became effective immediately. Prior to the enactment of this law, unemployment insurance tax rates for an employee leasing company were based exclusively on the experience of the employee leasing company, not its client companies. The law, however, prohibits employee leasing companies that choose their client’s experience rating from later switching to their own experience rating.

Note: This article was published in the February 2014 issue of the New Jersey eAuthority.

Topics:  Unemployment, Unemployment Benefits, Unemployment Insurance

Published In: Labor & Employment Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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