Business Report: Expected tax increase, PPE manufacturing, COVID-19 relief funds

Revenue from unemployment insurance payroll tax hike needed to replenish the Unemployment Trust Fund

Businesses should prepare to pay higher taxes come next fiscal year, as an unemployment insurance payroll tax hike is expected. Revenue from that tax is needed to replenish the Unemployment Trust Fund which has now been depleted as 1.6 million residents have had to go on unemployment this year. The New Jersey Business & Industry Association believes the tax increase could total $1 billion, unless something is done to soften the blow. The Senate Labor Committee on Thursday passed a bill that would slow the rate of increase so all the taxes would not have to be paid right away; rather, the total amount would be spread over a few years.

Lawmakers approved several other business-related bills Thursday, including one that would make it easier for New Jersey manufacturers to produce more personal protective equipment.

The New Jersey Economic Development Authority says more than 20,000 businesses in the state have been approved for COVID-19 relief funds since March. The state has provided more than $74 million in grants and loans through various programs.