On February 4, 2019, Governor Phil Murphy signed legislation to increase New Jersey’s hourly minimum wage rate from $8 to $15 (“A-15”). A discussion of key provisions of A-15 can be found here.
In addition to increasing the minimum wage, A-15 allows employers (“Employer”) who employ persons with impairments to receive up to $10 million in tax credits (“Tax Credits”) to offset the cost to an Employer of any increases in wages and payroll taxes for an impaired employee as a result of A-15.
Employers may petition the Commission of Labor and Workforce Development for an award of the Tax Credits (which are applicable to any wages and payroll taxes paid after Jan. 1, 2019).The amount of Tax Credits awarded to an Employer during a tax year, subject to certain exceptions, is equal to the amount of wages and payroll taxes which an Employer is required to pay for each impaired employee less the amount of wagers and payroll taxes which an Employer is required to pay each impaired employee the preceding year. The Tax Credits may be used to offset the corporation tax or gross income tax imposed, as applicable, on an Employer.
Parker McCay will continue to monitor the status of any regulations promulgated by the Commissioner in connection with the Tax Credits. In the meantime, please contact Parker McCay’s Corporate Department to discuss how the Tax Credits may benefit your business.
The content of this post is for informational purposes only and should not be construed as legal advice or legal opinion. You should consult a lawyer concerning your specific situation and any specific legal question you may have.