Governor Christie has outlined a detailed plan for economic development in New Jersey.The New Jersey Partnership for Action will be overseen by Lt. Governor Guadagno and will serve as the starting point for all initiatives, policies and efforts related to growing New Jersey’s economy and creating quality, sustainable jobs. Specifics of the Partnership include:

· Attracting New Businesses and Helping Existing Businesses Thrive

· Promoting New Jersey as a Place for Businesses to Choose

· Developing Policy Initiatives that Capitalize on New Jersey’s Strengths

· Putting Customer Service First

· Utilizing Innovation and Technology

The plan will be overseen by a privately-funded, not-for-profit corporation entitled, Choose New Jersey, to be led by a CEO who will both promote New Jersey to existing and new businesses as well as make recommendations directly to the Governor and Lt. Governor that will spur economic growth, job creation and innovation.

In general the credit is available to small employers who pay at least half the cost of the Single coverage for their employees.  They also need to meet certain firm size and wage requirements.  The maximum credit is 35% of 2010 paid premiums by eligible small business employers.  By 2014 the maximum credit will increase to 50% of paid premium.  Eligible small businesses can claim the credit as part of their general business credit starting with the 2010 income tax return they file in 2011.   Give  Two River Benefits a call to determine if you are eligible to receive a Healthcare Tax Credit at 732-517-0220.

Posted by Gordon Frederick, Two River Benefits

The Office of Legislative Services (OLS) projects that fiscal 2010 and fiscal 2011 revenues will be $249.4 million less than the estimates in the Governor’s proposed fiscal 2011 budget. For fiscal 2010, the OLS revenues are $81.7 million below the Governor’s estimates, and OLS’s fiscal 2011 estimates are $167.7 million below the Governor’s projections. These differences are relatively minor, representing less than 1 percent of the budget. 

The biggest reason for the lower estimate is the underperformance of the sales tax. For fiscal years 2010 and 2011, OLS projects $313 million less than the Governor’s estimates.

For the income tax, OLS anticipates $124 million more than the Governor’s estimate for fiscal 2010 and 2011.

For the Corporate Business Tax, while OLS’ estimate for fiscal 2010 is $44 million below the Governor’s estimate, OLS’ fiscal 2011 estimate is $55 million above that of the Governor.

The Senate and Assembly Budget Committees will begin hearings next week on the impact of the proposed budget on state departments.

Last week, we told you about the affidavit staffing firms need to produce when hiring new employees under the new HIRE Act. This week, the U.S. Internal Revenue Service released Form W-11, the Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit. The HIRE Act is a new law that provides a temporary payroll tax holiday to companies that hire previously unemployed workers during 2010. The IRS form will help employers claim the special payroll tax exemption. The form should be used to confirm that a new hire is a “qualified individual” under the HIRE Act. An employer cannot claim HIRE Act benefits unless the employee completes and signs the affidavit or similar statement. Under the new law, a qualified individual is defined as a person who begins employment after Feb. 3, 2010, and before Jan. 1, 2011; has not been employed for more than 40 hours during the preceding 60-day period before the employee begins employment; is not being employed to replace another employee except one who quit voluntarily or who was fired for cause (including downsizing); and is not “related” to the employer under rules set forth in the U.S. tax code. The IRS does not require employers to submit the affidavits but states that employers should keep them with their payroll and income tax records. The Form W-11 affidavit is available at /irs.gov http://www.irs.gov/pub/irs-pdf/fw11.pdf along with answers to frequently asked questions http://www.irs.gov/businesses/small/article/0,,id=220745,00.html about the payroll tax exemption and the new-hire retention credit.

The new HIRE Act signed by President Obama this month provides a temporary payroll tax exemption to companies, including staffing firms that hire previously unemployed workers. The law requires employees to sign an affidavit certifying that they had not been employed for more than 40 hours total in the 60-day period immediately prior to beginning employment. The U.S. Internal Revenue Service has indicated it will issue a form that employers can provide for employees to sign.

President Obama will sign the Health Care Reform Reconciliation Bill on Tuesday, March 30. The U.S. House of Representatives voted on March 25 to approve a “reconciliation” bill containing major amendments to the Senate-passed health care reform bill that was signed by President Obama last week. The Senate approved the bill earlier that day but made minor changes that required that it be sent back to the House for a final vote.
Among other things, the reconciliation bill dramatically increases the excise taxes that will be imposed on large employers (those with more than 50 full-time employees) that do not offer a qualified health insurance plan to their employees and dependents-from an annual maximum of $750 to $2,000 per full-time employee if the employer has even one employee who receives a government tax credit.

The Senate Labor Committee will hold a public hearing on Thursday, March 18, 2010 at 10:00 AM in Committee Room 6, 1st Floor, State House Annex, Trenton, NJ.  The Committee will hear testimony from the public about the fiscal condition of the State Unemployment Insurance (UI) Trust Fund and related UI tax issues, the effectiveness of the UI program in mitigating hardships from layoffs, and the scope and future prospects of federal programs for the unemployed, including UI benefit extensions and supplements and health insurance premium assistance. Those individuals presenting written testimony are asked to provide 15 copies on the date of the hearing.

 The public may address comments and questions to Gregory L. Williams, Committee Aide, or make bill status and scheduling inquiries to Cynthia D. Petty, Secretary, at 609-984-0445, fax 609-777-2998, or e-mail: OLSAideSLA@njleg.org. Written and electronic comments, questions and testimony submitted to the committee by the public, as well as recordings and transcripts, if any, of oral testimony, are government records and will be available to the public upon request.

The jobs bill contains two major provisions. First, it would exempt businesses hiring the unemployed from the 6.2 percent Social Security payroll tax through December and give them an additional $1,000 credit if new workers stay on the job a full year. The Social Security trust fund would be reimbursed for the lost revenue.

Second, it would extend highway and mass transit programs through the end of the year and pump in $20 billion in time for the spring construction season. The money would make up for lower-than-expected gasoline tax revenues.

Despite doubts among many lawmakers that it will create many jobs, the House passed legislation giving companies that hire the jobless a temporary payroll tax break. The measure passed 217-201 on a mostly party-line vote. The bill also extends federal highway programs through the end of the year.

This bill is designed to encourage employers who must reduce their employees’ work hours because of economic conditions to avoid layoffs by sharing the remaining work. That is achieved by permitting, under certain circumstances, a full-time employee to receive unemployment benefits when the employee’s weekly work time is reduced by 10% or more. The bill also permits the employee to attend an approved training program while receiving those benefits.

The bill also provides that an employer of at least 10 full-time non-seasonal employees may provide a shared work program if approved by the Department of Labor and Workforce Development. The program may be approved for one year with annual renewals upon request. The employer is required to sustain existing fringe benefits levels, not to hire additional part-time or full-time employees; or make unreasonable revisions of workloads; to provide information needed to monitor compliance; and to certify that if a labor union represents the employees, it has agreed to the terms of the program.