Oroho proposes payroll tax assistance to employers using pandemic funds

Senate Minority Leader Steve Oroho wants the state to use $1 billion in pandemic relief funds to offset payroll tax increases for New Jersey employers.

Oroho made his pitch after learning that the state Department of Labor told lawmakers that they need another $700 million to replenish the Unemployment Insurance Fund on July 1.

“That increase follows a $300 million increase that took effect less than a year ago and would push the total payroll tax increase borne by employers to well over $1 billion,” said Oroho.  “There is absolutely no reason the Murphy administration can’t dedicate or repurpose some of the unspent $5 billion of pandemic relief funds at its disposal to prevent this looming and unnecessary tax increase.”

Oroho said it would be “fiscally irresponsible for the Murphy administration to not take action to protect these funds by dedicating them quickly to continuing needs like our unemployment fund.”

“The longer the Murphy administration sits on unspent pandemic relief funds, the greater the risk those funds will be clawed back by the federal government,” he stated.