New Jersey amends Unemployment Compensation Reporting in efforts to expedite claims, which will increase the reporting burden on employers. This new law takes effect July 31, 2023.
New Jersey employers will need to report additional unemployment insurance obligations or risk facing heavy penalties for failing to comply with the new amendments. Currently, employers are required to provide every employee immediately upon separation with Form BC-10, which provides information about unemployment benefits. As of the effective date of July 31, 2023, employers are also required to “immediately and simultaneously” send a copy of the Form BC-10 which was provided to the separated employee to the New Jersey Department of Labor & Workforce Development’s Division of Unemployment Insurance (“NJ DOL”) electronically.
As of the effective date penalties for employers that “willfully fail or refuse to furnish any reports or information … including separation information” are liable for a $500 fine or twenty-five percent of the “amount fraudulently withheld.” In addition, “each such false statement or representation or failure to disclose a material fact, and each day of such failure or refusal, shall constitute a separate offense.”
Key facts to know:
- 0 days – Employers must electronically notify the NJ Department of Labor & Workforce Development (DOL) immediately. Employers may no longer retroactively contest a benefits determination if they are late in providing separation information.
- 7 days – NJ DOL has 7 days (from the date that the employer submits information or the separated employee applies for benefits, whichever is earliest) to obtain missing separation information. Employers have 7 days from the receipt of initial benefits decision to appeal the determination of benefits.
- 3 weeks – NJ DOL has 3 weeks from the date a claim is received to determine initial benefits. Employees have 3 weeks to appeal an initial benefits determination.
- $25 -> $500 – The penalty for noncompliance has drastically increased.
Authors: Don W. Foster, CPA, CCIFP | [email protected]; Eric Shicunoff | [email protected]; and Conor Barnes, CPA | [email protected]
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For more information on the New Jersey Unemployment Compensation Law and the impacts on employers, please contact Withum’s Business Enterprise Advisors (BEA) Team.
