NJ Unemployment Reporting Just Got Harder. Outsource Unemployment Reporting Now!
New Jersey employers need to start preparing now for significant new unemployment insurance reporting rules that went into effect last month. Recent changes to the state's Unemployment Compensation Law will require electronic submission of all communications with the New Jersey Department of Labor and Workforce Development (NJDOL). New strict deadlines will also apply. Is it time to outsource your unemployment reporting? Yeah, we think so.
Did you know about the BC10?
We didn't think so.
Currently, a form NJ BC-10 must go to every terminating employee. Many employers have no idea that they can be fined $50 PER DAY for not giving a terminated employee the BC-10 form. As HR Consultants, we see that most companies (that don’t use our services) are completely unaware of the requirement or the penalties. So what is the BC10? It is a form issued by the state of New Jersey that gives instructions to separated employees for claiming unemployment benefits. The law has been around for years, but no one seems to know about it.
Under the law, a BC10 must be given to every employee separating from employment. It doesn’t matter whether they are resigning, being laid off, or being terminated. Every employer has to fill out the form for every separating employee. If you are one of our clients who outsources the HR function to My Virtual HR Director, then don’t worry. We have you covered. If you are not using My Virtual HR Director to outsource your HR, then you should!
More New Requirements
Now, the NJ DOL will add a new form and it is going to require employers to report terminations of employment WITH the reasons for the separation. This means another step added to the process and an ugly twist: See many employers ignore requests for information about terminations as not to anger or provoke an employee who may be litigious if they are denied unemployment compensation. The new law makes it mandatory to provide the full truthful reasons for separation, so now the risk of lawsuits can multiply. That is a problem.
It also says that the reporting needs to be “immediate and simultaneous” to the termination. What that means remains to be seen as there is no time definition published as of yet.
These new obligations are expected to start sometime after July 31, 2023 But as of now, the Department of Labor has not provided the new additional form or a specific portal for reporting it. There is no guidance on how, once the NJDOL finalizes its electronic reporting systems, employers will be required to do so. The changes will transform how you handle separating from or temporarily laying off employees. Failing to comply could lead to substantial financial penalties for your business.
It's critical that NJ employers immediately review these changes and take steps to get ready.
Here is a 5-Point Action Plan:
- Transition to electronic UI reporting. Currently, employers must provide departing workers with printed unemployment benefit information using Form BC-10. Soon, employers will need to simultaneously send completed BC-10 forms to the NJDOL electronically as well.
- Understand increased penalties. If you fail to provide required separation details or respond to NJDOL requests, they may charge benefits to your account. Penalties for non-compliance are also higher - up to $500 or 25% of fraudulently withheld benefits per violation.
- Monitor guidance from the NJDOL. Make sure you are receiving email updates through your employer account online.
- Be wise how you word your reasons for separation. Get guidance on what is the safest and most truthful way to report misconduct, poor behavior and other reasons. “Not a good fit” is not a good fit here. It is too obtuse and can get you sued for discrimination.
- Get proactive. Open your NJDOL Employer Access account ASAP. Review your processes for handling separations and layoffs.
Outsource Your HR To My Virtual HR Director
The team at My Virtual HR Director can guide you through these new UI reporting rules in New Jersey. Our HR experts specialize in compliance and are staying up to date on all regulatory changes affecting employers. Let My Virtual HR Director Do the heavy lifting! We can handle UI reporting fully through our outsourced HR services. Outsource Unemployment Reporting with us and you won't have to worry about fines, penalties, or complicated processes.