New Jersey’s Unemployment Trust Fund Now Solvent
May 9th, 2014
In a recent statement, Governor Christie’s Administration announced that New Jersey employers will be spared $1 billion in taxes over the next five years as anti-fraud reforms and fiscal management practices undertaken by the NJ Department of Labor & Workforce Development has resulted in the solvency of New Jersey’s Unemployment Insurance Trust Fund. “Through sound fiscal management and our anti-fraud measures, we have brought this important safety net back into the black years before many predicted. The immediate result is the end of annual, compounding tax increases on New Jersey employers, who we are relying upon to improve our economy and to create jobs for the Garden State,” said Harold J. Wirths, Commissioner of the Department of Labor and Workforce Development. New Jersey’s Unemployment Insurance Trust Fund plunged into deficit in March 2009 after $4.6 billion in diversions over two decades, multiple tax table adjustments and a severe recession that forced the state to borrow federal funds to make benefit payments to large numbers of unemployed workers. The deficit triggered both state and federal laws designed to replenish the fund by severely increasing taxes on employers.