New Jersey Offers UI/DI Amnesty

The New Jersey Department of Labor and Workforce Development (“LWD”) will be offering amnesty to employers subject to the New Jersey Unemployment Compensation and Temporary Disability laws. New Jersey’s prior tax amnesties did not cover taxes or contributions due to LWD.

The amnesty offer covers unemployment, disability; workforce, healthcare, and family leave insurance contributions due from the first quarter of 2005 through the fourth quarter of 2009. The amnesty offer does not include liability due for quarters prior to the first quarter of 2005 and after the fourth quarter of 2009.

The amnesty offer does not include gross income, sales or any other taxes due to the Division of Taxation.

To be eligible for tax amnesty, the employer must be current with all “Employer’s Quarterly Report,” NJ927,  “Employer Report of Wages Paid,” WR-30, and pay one-hundred percent of the contributions, assessments, reimbursement charges, legal fees and fifty percent of the interest and penalties. Employers who owe only interest, penalties or both for the periods covered by amnesty must pay fifty percent of the interest and penalty.

The amnesty program is tentatively scheduled to begin September 17, 2010 and end November 1, 2010. LWD will begin mailing the amnesty notices to the employers during the week of September 13, 2010.

Kulzer & DiPadova helps its clients and their accounting and financial professionals determine and comply with their obligations under the New Jersey unemployment, disability; workforce, healthcare, and family leave insurance contributions laws.