The bill amends R.S.43:21-7 to significantly reduce the taxable wage base for unemployment compensation contributions, changing the calculation from 28 times the Statewide average weekly remuneration to 14 times starting January 1, 2022. This adjustment effectively halves the taxable wage base, which was set at $36,200 for 2021. Additionally, the bill establishes that if the taxable wage amount in any given year is lower than the previous year, the higher amount will be retained. The legislation also introduces provisions for contributions to the State disability benefits fund, specifying that the wage base for these contributions will be set at 107 times the Statewide average weekly remuneration for calendar years beginning January 1, 2020.

Furthermore, the bill outlines a new framework for calculating employer contribution rates based on their benefit experience and the fund reserve ratio, with specific rates for fiscal years 2022, 2023, and 2024. It maintains a minimum contribution rate of 5.4% for employers and allows for voluntary additional contributions to recalculate experience rates. Several outdated provisions are deleted to streamline the process, including those governing the calculation of contribution rates and adjustments based on the fund reserve ratio. The bill also clarifies the transfer of employment experience between employers during business transfers, ensuring that successors can inherit their predecessors' experience under certain conditions. Overall, the bill aims to provide financial relief to employers and employees while ensuring the sustainability of the unemployment compensation fund.