Oroho Calls for Dedicated Pandemic Relief Funds to Prevent Payroll Tax Increase

The top North Jersey lawmaker in the State Senate is hoping to prevent added payroll taxes from being implemented.

State Senate Minority Leader Steven Oroho (R-24) is calling on the Murphy Administration to dedicate pandemic relief funds to prevent a $1 billion payroll tax increase.

Oroho is calling on the Murphy Administration to bolster the Unemployment Insurance (UI) Fund to protect New Jersey employers during this period of economic hardship.

Budget Hearings

“(The) budget committee meeting with the Department of Labor confirmed that New Jersey employers will be hit with a massive $700 million payroll tax increase on July 1 to help replenish the UI Fund,” said Oroho, a member of the Senate Budget & Appropriations Committee. 

“That increase follows a $300 million increase that took effect less than a year ago and would push the total payroll tax increase borne by employers to well over $1 billion,” he continued.

Looking to Other States for Guidance

Oroho argued dozens of other states had utilized federal pandemic-era funds to replenish unemployment funds, largely drawn from during pandemic-related unemployment between 2020 and 2022.

“There is absolutely no reason the Murphy administration can’t dedicate or repurpose some of the unspent $5 billion of pandemic relief funds at its disposal to prevent this looming and unnecessary tax increase,” added Oroho.

Oroho pointed to a 2021 Senate Republican proposal that would have used $2.5 billion of the $6 billions received by the state in American Rescue Plan (ARP) Act funding for this purpose. 

Unspent Federal Funds

Oroho noted a recent report by the state auditor found just $1 billion of the state’s ARP funds had been spent to-date.

“The longer the Murphy administration sits on unspent pandemic relief funds, the greater the risk those funds will be clawed back by the federal government,” added Oroho. 

“It would be fiscally irresponsible for the Murphy administration to not take action to protect these funds by dedicating them quickly to continuing needs like our unemployment fund.”