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, addressing the current underfunding of the administration fund. This redirection is designed to enhance the operational efficiency of the unemployment compensation system, ensuring that it can effectively manage and distribute benefits to eligible workers. The bill specifies the contribution rates required from employers, which will be adjusted based on the fund's reserve ratio, promoting fiscal responsibility. Notably, if the reserve ratio falls below 1.0%, the contribution rate will increase by 10%, while conditions for potential decreases in rates are also outlined.

Additionally, the bill introduces new contribution rates for workers, reducing the rate for nongovernmental employees from 0.3825% to 0.3625%, with an additional 0.0200% directed to the administration fund. For governmental employees, the rate decreases from 0.0825% to 0.0625%, also with the same additional contribution. The bill clarifies that these contributions must be withheld by employers and transmitted to the appropriate authorities. It also includes provisions for transferring employment experience during business transfers and allows for voluntary additional contributions by employers to recalculate their experience rates. Overall, the bill aims to create a more equitable and responsive unemployment compensation system while ensuring adequate funding for both the trust and administration funds.