Back in June, I wrote about a provision in the New Jersey Unemployment law that allows the State to assess unemployment tax on payments to independent contractors, even if the contractor is a corporation. In my client's situation, they hired a bus company to transport clients. It turned out that the bus company was not properly reporting and paying NJ Unemployment Tax, so the tax was assessed against my client. By the time the audit of my client had occurred, the bus company could no longer be found.
Although it will not benefit my client, it looks like there will be a good outcome for New Jersey employers. We recently attended a legislative dinner sponsored by the NJ Commerce and Industry Association and the NJ Society of Certified Public Accountants. I had the pleasure of sitting with NJ Assemblyman Jon Bramnick. I told Assemblyman Bramnick about this law, and how I believed that it is patently unfair to New Jersey employers. Remarkably, he agreed! He asked that I send him a copy of the specific provision, along with my suggestion for changing it, which I did the next day.
Since then, I have been working with the Assemblyman's legislative aide, Carlos Cruz. Mr. Cruz has kept me informed every step of the way, and this week sent a draft of the proposed law change for my review. I thank Assemblyman Bramnick and Mr. Cruz for their efforts to make New Jersey a better place to be in business. I never expected my voice to be heard, and certainly did not expect that it would result in a law change. I will keep you posted and let you know if and when the new law is enacted.
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