The New Jersey Department of Labor and Workforce Development (NJDOL) has announced that state unemployment insurance (UI) contributions have exceeded expectations, making it possible to lower the UI tax rate for employers beginning in the new fiscal year on July 1, 2025.
As a result, employer UI contribution rates will shift from the current “Column D” range of 0.6% to 6.4% to the lower “Column C” range of 0.5% to 5.8%. This adjustment is projected to save employers approximately $300 million in the upcoming fiscal year.
Employer contribution rates to the Unemployment Insurance (UI) Trust Fund are based on two key factors. The first is the overall status of the fund, which determines the applicable column of the UI tax table for all New Jersey employers. The second is each employer’s individual experience with unemployment claims, which dictates their specific rate within that column.
This lowering of the UI contribution rate for businesses indicates significant recovery for the UI Trust Fund, which was heavily impacted by the Covid-19 pandemic.