New Employer Responsibilities for New Jersey Unemployment Notice
You know what they say: Change is the only constant in life. Effective July 31, 2023, New Jersey employers will need to embrace a change to their off-boarding processes in the form of new reporting mandates for all employees who separate from their organization.
Form BC-10 Reporting Mandates: Immediate and Simultaneous Submission
NJ employers have long been directed to provide separating employees with the Form BC-10, which provides instructions for claiming unemployment benefits. Effective July 31, 2023, employers will now “immediately and simultaneously” submit the Form BC-10 they provide to employees to the Division of Unemployment Insurance (the Division). Along with the Form BC-10, employers will also submit details of the separation to the Division, which will be used to make a benefit determination in the event an unemployment claim is filed. These reports will be required for employees who separate for any reason, including resignation.
Creating an Employer Access Account: A Step Towards Compliance
The Division has yet to publish instructions on the submission process; however, as a first step towards compliance, they require all employers to create an Employer Access account on their website. Employers will register an email address for communications with the Division, which will be used to share new electronic reporting instructions once available.
Updated Notification and Appeal Timelines
In addition to changes in reporting requirements, there are updates to notification and appeal timelines that impact NJ employers:
- The Division must now notify the employer of missing information within seven (7) days of the filed claim or the employer’s submission of the newly required reports (whichever is first).
- NJ employers must respond to the Division’s request for information within seven (7) days (previously ten days).
- Initial benefits determinations will be made within three (3) weeks (previously two (2) weeks).
- NJ employers must appeal initial benefits determinations or subsequent appeals within seven (7) days of confirmed receipt.
- NJ employers must comply with the timelines to have the ability to contest benefit determinations retroactively. They will only be able to challenge determinations for weeks that occur after all required information is provided to the Division.
Penalties for Noncompliance
With the increase in reporting requirements also comes an increase in penalties for noncompliance. NJ employers who willfully refuse to furnish the required reports, knowingly make false statements, or withhold information that could impact benefits determinations will be subject to increased penalties: $500, or 25% of the amount fraudulently withheld, whichever is greater. Each day of noncompliance constitutes a separate offense. Additionally, any benefit overpayments will not be corrected if the error is made because the employer failed to provide the required employee separation information.
Ensuring Compliance with New Regulations for NJ Employers
To ensure compliance with these new regulations, NJ employers will need to take the following next steps:
- Create an account with Employer Access to register an email address that will be used to receive communications from the Division.
- Review and amend off-boarding processes to include the upcoming reporting requirements.
Staying informed and remaining compliant with these new directives will safeguard your business against increased penalties and other potentially significant consequences. If you have questions about these new regulations, contact EnformHR for further discussion and guidance.