The bill amends R.S.43:21-7 to redirect a portion of employer contributions from the unemployment compensation trust fund to the unemployment compensation administration fund, aiming to improve the management of unemployment compensation. It specifies that employers, excluding governmental entities and certain nonprofits, must pay contributions based on their wage payments, with rates determined by the employer's benefit experience and the overall balance of the unemployment trust fund. The bill also clarifies how employers' accounts are charged for benefits paid to claimants, streamlining the process and enhancing transparency.

Additionally, the bill adjusts contribution rates for workers and employers, reducing the rates for both private and governmental employees while mandating an additional contribution to the administration fund. Specifically, workers' contributions will decrease from 0.3825% to 0.3625% for nongovernmental employees and from 0.0825% to 0.0625% for governmental employees, with an added 0.0200% directed to the administration fund. The bill ensures that the overall funding for the unemployment compensation trust fund remains stable while addressing the funding shortfall in the administration fund, which is essential for the effective operation of the unemployment compensation system. The changes will take effect immediately for wages paid on or after January 1, 2024.