New Jersey AC-174.1 Rate Notices Expected Any Day: Is Your Business Paying the Lowest Possible Rate?
New Jersey employers should be watching for their annual AC-174.1 Employer Contribution Rate Notices which have been issued as of 8/13/2026.
The AC-174.1 establishes an employer’s unemployment and disability contribution rates for the fiscal year. These rates directly affect payroll costs, but employers should not assume the state’s calculation is automatically correct—or that the assigned rate is the lowest rate available.
Why Your AC-174.1 Deserves a Closer Look
When your notice becomes available, it is important to review more than the final rate. The figures used to calculate that rate should also be verified, including your taxable payroll, contributions, benefit charges and reserve balance.
An incorrect figure or overlooked adjustment could result in your company paying more than necessary. New Jersey generally allows employers only 30 days from the notification date to protest a rate determination, so prompt review is essential. The state also permits eligible employers to make a voluntary contribution and have their experience rate recalculated—but that opportunity is time-sensitive as well. The New Jersey Department of Labor explains the rate-notice process here.
Could a Voluntary Contribution Lower Your Costs?
For some employers, making a one-time voluntary contribution to the Unemployment Compensation Fund can reduce the assigned unemployment tax rate. The key question is whether the resulting payroll-tax savings will exceed the required contribution.
That calculation can be more complicated than it appears. Employers need to consider projected taxable payroll, the amount required to reach a lower rate and the remaining time in the rate year. A voluntary contribution is not beneficial in every situation—but when the numbers work, the savings can be significant.
Dunn Corporate Resources Can Review Your Notice at No Cost
Dunn Corporate Resources specializes in unemployment cost control, including:
- Analysis and verification of unemployment tax rates
- Voluntary contribution calculations and recommendations
- Review of benefit charges, contributions and account credits
- Written protests of incorrectly calculated rates
- Identification of potential tax-saving opportunities
Our team will perform a no-cost analysis of your AC-174.1 and help determine whether your rate is accurate, whether a voluntary contribution makes financial sense and whether additional savings may be available.
There is no obligation—and no reason to leave potential savings on the table.
When you receive your notice:
Because New Jersey’s review and voluntary-contribution windows are tied to the notice date, waiting could mean missing an opportunity to correct an error or reduce your unemployment tax costs.
Once your new AC-174.1 is available, send it to Dunn Corporate Resources for a complimentary review. We will analyze the numbers and show you where your company stands.
Contact Dunn Corporate Resources today at dunncorp.com or call 856-596-5510 to request your no-cost rate analysis.