The New Jersey State Senate recently passed several bills to help businesses and workers who are struggling from the economic fallout related to the coronavirus pandemic.
Two bills, in particular, are very beneficial for small businesses facing economic uncertainty due to the ongoing crisis that has shut down much of the State economy for an extended period of time.
NJ S2348 (20R) , would create a state program that would provide businesses with a credit against their New Jersey corporation business tax or their gross income tax liability for wages paid to eligible employees. The tax credit for employers would be equal to 20 percent of the federal credit for each employee, with a maximum state credit of $1,000 per employee.
A second bill, NJ S2347 (20R), would establish a Business-Related Tax Deferral Assistance Program to provide businesses with access to cash to continue to meet payroll obligations, purchase goods and services from suppliers and for other business costs. The bill allows small businesses to defer payments for several taxes, like sales and income taxes, as well as contributions for workers’ compensation and unemployment, among other things.
All deferred payments would be required to be paid to the state after the emergency over a two-year period, with 50 percent submitted no later than June 30, 2021, and the remaining 50 percent no later than June 30, 2022.
The program would be run by the Economic Development Authority, which would also publish an annual report to monitor and evaluate the program.
NJ CAR will report about both programs as new details are provided.