Payroll Tax Credit for NJ Businesses
Over the last week, more than 206,000 new claims of unemployment were filed. In just the past two weeks, more than 362,000 residents have filed for unemployment, according to the New Jersey Department of Labor and Workforce Development (NJDOL). The NJDOL is urging employers to keep employees on the payroll throughout the COVID-19 pandemic and to take advantage of a 100 percent, dollar for dollar, payroll tax credit provided under the Families First Coronoavirus Response Act (FFCRA).
The federal law, which went into effect on April 1, provides unprecedented support to employers to provide federal Emergency Paid Sick Leave and Emergency Paid Family and Medical Leave to workers affected by COVID-19.
The payroll tax credit immediately and fully reimburses employers with fewer than 500 employees (99.8 percent of all NJ employers) by allowing them to reduce their federal payroll taxes by the amount they spend on emergency leave. This tax credit enables businesses to keep workers on their payrolls and ensures that parents and caregivers to not have to make the impossible choice of earning a paycheck or staying at home to care for themselves or a family member.