Regulations

N.J. Operators Could Face Major Taxes For Unemployment Fund

LCT Staff
Posted on April 7, 2010

2010 LCT Operator Of The Year Bill Atkins is quoted and pictured in an article about how such measures could affect his business.

RED BANK, N.J. — From a recent business article on APP.COM:

“. . . State law calls for employers to stabilize the unemployment trust fund by paying a higher tax. On its current course, employers would see their unemployment taxes increase by anywhere from 32% to 225%.

The prospect angers employers, who say a combination of high taxes and heavy regulation — not to mention a slow economy — makes it much harder to expand and hire workers.

Bill Atkins, owner of RED BANK LIMO, a limousine company with 12 employees, said he has to brace this month for a new certification system for his drivers that will cost his company $72 per driver. He may also see his unemployment taxes soar, even though he said he hasn't laid off anyone in the company's 23-year history.

"Unfortunately, it seems like that's been the solution to everything," Atkins said. "Instead of running (the state's budget) like a household, they say, "Let's raise taxes.' It just seems like it's an unfair burden they put on businesses. The more burden you put on businesses, it hurts the economy."

New Jersey is one of at least 32 states that are borrowing from the federal government to keep the benefits flowing. But its position is self-inflicted, experts said. . . . “

COMPLETE ARTICLE ON NEW JERSEY UNEMPLOYMENT TAX

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