UI Tax: Lower NJ Tax Rate

How to lower your unemployment tax rate:


Two things in life are certain: Death and Taxes. Whether it is income tax, sales tax, property tax, etc. you still have to pay it! The good new is – some taxes are controllable and even minimizable.

Employers are all too familiar with with the effects of taxes on their bottom line profits. Ever wonder if there’s a way to pay less money in taxes? Well, one tax that is CONTROLLABLE is the unemployment tax rate. For employers, it does not matter what state you do business in, you can still reduce your unemployment tax rate – all it takes is some know how.

There are three main areas that employers need to watch in order to control their unemployment tax:

  1. Administration:

Every unemployment claim needs to be fought with the proper legal language that is written in the state laws. Be sure to to specifically identify the final incident that caused the termination and don’t mis-interpret the claimant’s actions for something that they weren’t.

  1. Auditing:

Auditing is arguably the most important aspect in lower an unemployment tax rate. Did you know that each state admits that it pays out an excess amount in unemployment benefits each year? Check out the map here to see how your state stacks up against others. Employers must check to see how much each claimant is supposed to be getting paid out, and then determine if the claimant is actually receiving the proper amount of pay. Here’s the catch: this money has already been paid – the state is just letting you know they paid it. It is your job to check that the state is paying the proper amount of money out of your account!

  1. Education:

You don’t know what you don’t know. And, your employees don’t know what they don’t know. Did you know that you can “buy down” your tax rate to effectively pay taxes at a lower tax bracket? This is call a voluntary contribution. Certain states allow voluntary contributions, while others do not. This is just one example of an opportunity to lower your tax rate without having to do any “work”.

Employers should be proactive in ensuring that their whole organization is on the same page. Managers should understand how the unemployment system works, since often times an unemployment claim will be decided based on a write up or termination letter from a manager. Companies should be following uniform procedures when disciplining employees and issuing write-ups in a logical progression.


Dunn Corporate Resources has the economies of scale to help your business achieve the lowest possible unemployment tax rate, while offloading all of the workload! Our award winning computer system is fully integrated with the Federal Government’s SIDES system allowing us to process unemployment claims electronically! Our systems ensure no overpayments are made, and that employers receive all possible credit’s to their unemployment accounts.

Contact us today for a no cost analysis of your unemployment tax account to see what savings are available!