Bill
A 4043
The bill redirects 0.02% of employee UI contributions from the Unemployment Compensation Trust Fund to the UI Administration Fund to bolster UI system administration.
Note on title discrepancy
- The provided bill title ("Prohibits leaded aviation gasoline") does not match the bill text and supporting documents supplied. The documents for A4043 (and A4043A) all concern worker contributions for unemployment insurance. This summary covers the actual legislative content in the documents (changes to R.S.43:21-7 and redirection of worker contributions).
Summary — main purpose
- The bill redirects a small portion of employee unemployment insurance (UI) contributions from the Unemployment Compensation Trust Fund into the Unemployment Compensation Administration Fund to provide additional resources for administering New Jersey’s UI system.
Key provisions
- Amends R.S.43:21-7 to change how portions of employee contributions are collected and deposited.
- For workers employed by nongovernmental employers (including nonprofits) and governmental employers that pay contributions:
- Current employee contribution to the UI trust fund: 0.3825% of wages.
- New split: 0.3625% to the trust fund + 0.0200% to the UI Administration Fund.
- For workers employed by the State or other governmental entities that pay in lieu of contributions:
- Current contribution: 0.0825% of wages.
- New split: 0.0625% to the trust fund + 0.0200% to the UI Administration Fund.
- The redirection applies to contributions made after December 31, 2023.
- Committee amendment expanded the redirection to include governmental employers as well as private employers.
- The redirection amount is smaller than funds already committed to separate trust funds for self-insured employers, so employer contribution rates are not affected.
Who is affected
- Employees (through a minor reallocation of the small share of wages they contribute toward UI).
- Department of Labor and Workforce Development (administration and oversight).
- The Unemployment Compensation Trust Fund (slight decrease) and the Unemployment Compensation Administration Fund (increase).
Fiscal impact (per Office of Legislative Services fiscal estimate, dated June 25, 2024)
- No net impact on State revenues or expenditures (a reallocation between state UI funds).
- Estimated annual redirection to the Administration Fund: approximately $25.7 million (CY 2024), $26.3 million (CY 2025), and $27.3 million (CY 2026).
- OLS: diversion represents ~0.7% of total annual UI assessments and is unlikely to materially affect the solvency of the trust fund (projected trust fund balances of ~$3.1 billion at end of FY2024 and ~$3.7 billion at end of FY2025).
- Additional administrative funding could improve system operations (staffing, infrastructure), although long-term effects on withholding needs are uncertain.
Procedural status and timeline (selected)
- Introduced in Assembly: March 7, 2024 (A4043).
- Assembly Labor Committee amendment: March 11, 2024 (included governmental employers).
- Reported out of Assembly committee (1st reprint): May 16, 2024.
- Passed Assembly: June 28, 2024 (54-23-0).
- Passed Senate: October 28, 2024 (28-11).
- Approved into law: December 12, 2024 (P.L.2024, c.101).
- Fiscal note prepared by OLS June 25, 2024.
- Subsequent entries indicate printing as A4043A and later committee referrals in 2025 (possibly related to further amendments or different legislative actions), but the bill as described above was enacted as P.L.2024, c.101.
Related bills
- Companion/related Senate bills: S3310 and S5440 (listed as companions in the record).
Bottom line
- A4043 reallocates 0.02% of employee wage contributions from the UI trust fund to the UI Administration Fund to bolster administrative capacity. The change is fiscally modest (roughly $26 million annually) and designed to strengthen UI administration without materially affecting benefit funding or employer contribution rates.
Compiled from official sources — confirm details with the bill’s official record.
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