Effective in January 2012, the combined employee payroll tax rate for New Jersey employees is reduced to .00705 from .00985 in 2011. This means a savings of $87 per worker. This equals approximately $190 million in direct tax relief to New Jersey employees.
FUTA Credit Reduction Update:
21 States will be added to the FUTA credit reduction list due to failure to pay back on loans from the federal government to continue paying unemployment benefits. After a state has had an outstanding Title XII loan balance for two consecutive years on January 1, employers in that state face a 0.30% reduction in the FUTA credit if the loan is not paid back by November 10 of that same year.
