All New Jersey employers received this week a Notice of Employer Contribution Rates. It clearly states, “This is not a bill”, but rather a summary of the manner in which the NJ Department of Labor calculates your employer contribution rate for unemployment and disability. Furthermore, this form enables you to determine whether a voluntary contribution would save you, or your clients, money in the subsequent year. A voluntary contribution increases the reserve balance and may reduce your contribution rate.
The unemployment expense is a substantial component of labor costs. If you wish to make a voluntary contribution to your reserve balance you have 30 days from the date of your notice to do so. In addition, we suggest that you verify the amount of the employer contributions and the benefits charged to your account as stated on the notice. Report any discrepancies to the NJ Dept. of Labor.
If you would like assistance in determining if a voluntary contribution will save you money, please do not hesitate to contact us. We will provide you with an illustration of the benefits which you might reap from making such a contribution.