Category Archives: Employer Tax Strategies

20262026 New Jersey Releases AC-174 Rate Notices AC-174 Rate Notices

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.

How to Read Your Unemployment Tax Rate Notice (And Why It Matters)

Every year, employers receive an unemployment tax rate notice from their state. For many companies, it’s just another piece of mail that gets filed away.

That can be a costly mistake.

Your unemployment tax rate determines how much your business pays in state unemployment taxes. If your rate is higher than it should be, you’re likely paying more than necessary.

What Should You Look For?

Your unemployment tax rate notice contains information about how your rate was calculated, including:

Your assigned tax rate
Benefit charges to your account
Your experience rating
Appeal deadlines

Mistakes happen. Incorrect benefit charges, errors in your experience rating, or claims that should have been protested can all result in a higher tax rate.

Don’t Miss the Appeal Deadline

If your tax rate notice contains an error, you may have the opportunity to appeal it. However, every state has strict deadlines. Waiting too long could mean paying a higher rate for another year.

We Can Review It for You

At Dunn Corporate Resources, we offer a complimentary review of your unemployment tax rate notice. We’ll determine whether your rate appears accurate, identify potential savings opportunities, and let you know if further action may be worthwhile.

Many employers are surprised to learn they’re paying more than they should.

If you’ve recently received your unemployment tax rate notice, contact Dunn Corporate Resources for a no-cost review. It could save your company thousands in future unemployment taxes.

Breaking Down Column C: How New Jersey Employers Can Benefit from Lower Unemployment Tax Rates in 2025

For employers in New Jersey, managing unemployment insurance (UI) tax rates is a critical part of payroll planning and budgeting. Every year, the state reviews the health of its unemployment trust fund and adjusts the tax schedule accordingly. In 2025, New Jersey employers will experience a welcome change — the shift to Column C, which represents a lower tax rate range compared to the previous year’s Column D.

This shift means businesses across the state will see reduced unemployment insurance tax costs, freeing up resources that can be reinvested into operations, employees, and long-term growth. Let’s break down what Column C is, why this shift matters, and how employers can take advantage of the savings.

Understanding New Jersey’s Unemployment Tax Columns

New Jersey calculates unemployment insurance tax rates using a system of “columns.” Each column reflects the financial condition of the unemployment trust fund:

Higher Columns (like Column E or F) → Indicate stress on the fund and result in higher UI tax rates for employers.
Lower Columns (like Column A, B, or C) → Signal stability in the fund and allow for lower tax rates.

For 2024, employers operated under Column D, which carried moderately higher tax rates due to the pandemic’s lingering impact on unemployment reserves. But in September 2025, the state will officially move to Column C, easing the burden on businesses.

What Column C Means for Employers

The move to Column C directly translates into lower unemployment insurance contributions. While each employer’s exact rate still depends on their experience rating (how many former employees have claimed benefits), the baseline for all employers will now be lower.

Here’s how employers benefit:

Lower Payroll Costs
Payroll expenses are one of the biggest costs for any organization. A reduction in unemployment tax rates means businesses will spend less per employee, creating room for savings or reinvestment.
More Predictable Budgeting
Knowing that UI rates are dropping gives employers more confidence when planning budgets for 2025. This is especially important for small and mid-sized businesses that operate on tighter margins.
Stronger Incentives for Hiring
With tax rates falling, some employers may feel more comfortable expanding their workforce, which could stimulate growth both at the company and state level.
A Positive Economic Signal
The shift to Column C is not just about numbers. It reflects the overall improvement of the state’s unemployment trust fund a sign of economic recovery and stability.

Preparing Your Business for the Shift

While this is good news, employers still need to prepare strategically to ensure they capture the benefits of the change. Here’s what you can do:

1. Review Your Experience Rating

Your company’s individual UI tax rate depends on its experience rating, which is affected by the number of unemployment claims filed by former employees. Even with the Column C shift, businesses with high turnover or frequent claims may not feel the full relief. Conduct a review now to see where you stand.

2. Prioritize Employee Retention

Retaining employees isn’t just good for culture and productivity it also helps keep your UI rates low. Implementing strong training programs, offering competitive benefits, and building a supportive workplace can reduce turnover.

3. Partner with HR or Payroll Experts

Tax shifts can be confusing, especially when layered with compliance requirements. Partnering with HR or payroll professionals can ensure your business remains compliant while maximizing savings.

4. Reallocate the Savings

Think about how your business can put these savings to work. Whether it’s upgrading technology, offering better benefits, or expanding services, reinvesting unemployment tax savings can create a cycle of growth.

Long-Term Perspective: What Employers Should Expect

The move to Column C is a positive step, but it’s important to remember that unemployment tax rates are not fixed. They shift based on the overall health of the trust fund and economic conditions. Employers should stay informed and prepare for future adjustments.

Short Term (2025): Lower rates under Column C.
Medium Term (2026 and beyond): Rates will depend on claim levels and fund balance. If unemployment stays low, the trend toward lower columns could continue.
Long Term: A stable trust fund benefits everyone employers, employees, and the state economy.

Why This Matters Beyond Numbers

The shift to Column C isn’t just about tax savings it represents a broader recovery for New Jersey businesses and workers. It signals that fewer people are drawing unemployment benefits and that the state’s economy is on steadier ground.

For employers, it’s also a chance to reset. By leveraging this financial break, businesses can focus more on growth and less on navigating the challenges of higher payroll taxes.

Final Thoughts

New Jersey’s shift to Column C in September 2025 is a welcome relief for employers who have shouldered higher unemployment insurance costs in recent years. Lower rates mean reduced payroll expenses, better budgeting flexibility, and an opportunity to reinvest in employees and operations.

While the exact savings will vary by company, one thing is certain: this move reflects progress and stability in the state’s workforce system. Employers who prepare now by reviewing their experience ratings, improving retention, and planning for the future will be best positioned to maximize the benefits of Column C.

In an ever-changing economic landscape, every small financial shift can make a big difference. And in 2025, that difference is good news for New Jersey businesses.