Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
SYNOPSIS
Provides for withholding of State payments to vendors for delinquent unemployment and disability taxes.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the withholding of State payments to vendors for delinquent unemployment and disability taxes and supplementing chapter 21 of Title 43 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Upon a determination by the controller, made pursuant to the procedures provided by R.S.43:21-14 or R.S.43:21-16, that an employer has failed to pay any contribution required by R.S.43:21-7 to the unemployment compensation fund, the State disability benefits fund, or the Family Temporary Disability Leave Account of the State disability benefits fund, including any contribution which the employer is required to collect from his employees to pay into the funds, has not made the required payment after notification by the controller of the failure, and has not been approved by the controller for an extension of time in which to make the payment or for other deferral of payment, the controller shall notify the Director of the Division of Budget and Accounting in the Department of the Treasury of the failure. For the purposes of section 1 of P.L.1995, c.159 (C.54:49-19), the amount of assessment for contributions, penalties, and interest due shall be regarded as a State tax debt of the employer. If the employer is under contract to provide goods or services to the State or its agencies or instrumentalities, the division shall utilize the set-off procedures of that section to have payments withheld from the employer under the contract as needed to satisfy the indebtedness in the manner provided by that section, except that, in addition, a fine equal to 25% of the contributions owed shall also be withheld. In the case of a failure to pay contributions to the unemployment compensation fund, the delinquent amount of contributions shall be deposited into the unemployment compensation fund and the fine, penalties, and interest due shall be deposited into the unemployment compensation auxiliary fund. In the case of a failure to pay contributions to the State disability benefits fund or the Family Temporary Disability Leave Account of the State disability benefits fund, the delinquent amount of contributions shall be deposited into the State disability benefits fund or the Family Temporary Disability Leave Account of that fund, as appropriate, and the fine, penalties, and interest due shall be deposited into the administration account of the State disability benefits fund. The department shall use a portion of the fines to reimburse the Division of Budget and Accounting for expenses incurred by the Treasurer in the implementation of this act.
2. This act shall take effect immediately.
STATEMENT
This bill directs the controller of the Department of Labor and Workforce Development, upon a determination that an employer has failed to pay any required contribution to the unemployment compensation fund, the State disability benefits fund (SDBF), or the Family Temporary Disability Leave Account of the SDBF, and has not made the required payment after notification by the controller and has not been approved for an extension of time in which to make the payment or for other deferral of payment, to notify the Division of Budget and Accounting in the Department of the Treasury of the failure. If the employer is under contract to provide goods or services to the State, the division is required to utilize the set-off procedures provided by law to withhold State payments to the vendor equal to the delinquent amount for deposit into the appropriate fund together with a 25% administrative fee to be deposited into the unemployment compensation auxiliary fund or the administration account of the SDBF. A portion of the fines would be used to reimburse the division for its expenses.