New Jersey lowers unemployment insurance tax rates for employers starting July 1

Lower UI Tax Rates Take Effect July 1— What That Means for Your Business 

Starting July 1, 2025, New Jersey employers will see a drop in Unemployment Insurance (UI) contribution rates. The state is moving back to “Column B” on the UI tax table, which is expected to save employers around $600 million in payroll costs over the next year. 

For small businesses, this means lower payroll taxes and a little extra breathing room—especially helpful after a few years of higher rates tied to pandemic-era claims. Whether you use those savings to hire, train, or invest back into your operations, it’s a welcome change. 

If you’re thinking about how to make the most of it, UCEDC’s small business loans and hands-on training programs can help you take that next step. 

Have questions or want to dig into the details? You can read the full announcement from the NJ Department of Labor here.