Banking corporations and financial business corporations that are separate filers will soon need to use Form CBT-100 to file their returns. Form BFC-1 is being discontinued. The discontinuation of Form BFC-1 does not impact combined filers.

Businesses in New Jersey must comply with rules and regulations, but under a new law that takes effect on June 19th, 2023, state agencies can suspend enforcement of penalties on certain first-time violations at their discretion. Penalties may be suspended only if the first-time violation doesn’t impact public welfare, cause employees to lose income or benefits, or present the risk of environmental harm. The temporary waiver provided under this new law is available to businesses with 50 or fewer full-time employees and subject to several important exceptions, including:

1. Violations of a criminal nature
2. Violations that were intentional or knowing acts
3. Violations that are grounds for the suspension or revocation of the owner’s authority to operate the business
4. Violations that are grounds for the business to be disqualified from bidding for State contracts
5. Violations of any State employment or labor-related law
6. Violations that are grounds for the issuance of a stop-work order
7. Violations of federal law that require the State to impose a penalty

If none of these apply to the first-time violation, agencies have the discretion to give the cited business up to 60 days to “cure,” or resolve, the violation. Failure to cure or resolve the violation will result in the business being assessed all fines and penalties available under the law upon the expiration of the cure period.

If your business has been cited for a first-time violation and you believe that it is eligible for a cure, contact the agency that issued the violation. State agencies will report annually on how they are using this discretionary authority.

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A new law is making changes to records keeping and reporting requirements for temporary help service firms and for the client companies that employ their workers. The law covers many people in temporary work assignments, with some exceptions. Two of these requirements are now in effect, as of May 7th, 2023. 

• These firms must now provide workers with a statement that contains certain required information in English as well as the language identified by the worker as their primary language.
• These firms and their clients may not retaliate, through discharge or in any other manner, against any worker who exercises their rights under this law.

The remaining key requirements take effect on August 5th, 2023:

• Temporary help service firms must be certified by the Division of Consumer Affairs within the New Jersey Department of Law and Public Safety.
• These firms must create certain records relating to their temporary workers and must keep these records for six years from their date of creation.
• These firms and their clients may not charge temporary workers for their transportation to or from a worksite, with certain exceptions.
• These firms may not obstruct their workers’ rights to seek employment elsewhere, including with their clients, and may not inhibit their clients from hiring those workers.
• Employers may not enter into a contract for temporary help services with a company that is not certified by the Division of Consumer Affairs. Employers are responsible for verifying the registration status of a temporary help service firm.

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Employers of all sizes are required by State law to provide full-time, part-time, and temporary employees with up to 40 hours of paid sick leave per year to care for themselves or a loved one. Employers can provide all 40 hours of the earned sick leave up front each year, or they can provide one hour of earned leave for every 30 hours worked.

Employees who work more than 40 hours in a week should receive 150% of their regular pay rate (time and a half) for hours worked in excess of 40.

Employers who do not comply may be subject to enforcement action.

Small businesses seeking financing for clean energy projects, new clean energy companies, and small business banking partners can learn how to finance qualifying clean energy initiatives by attending a virtual information session about the New Jersey Clean Energy Loans (NJ CELs) program on Monday, April 17th, 2023 at 1:00 p.m. Applications for the program will open on Wednesday, April 19th, 2023.

NJ CELs will offer loans of $500,000 to $20 million with a term of one to 25 years, with the New Jersey Economic Development Authority (NJEDA) financing up to 50% of the total loan amount ($250,000 to $10 million). 

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Employers with at least 100 employees have obligations under the State’s Worker Adjustment and Retraining Notification (WARN) law. As of April 10th, 2023, several new changes to the law are in effect. Among the most significant changes: 

• Employees impacted by layoffs, closures, or relocations must now have 90 days advance notice.
• Employees must be notified whenever a mass layoff impacts at least 50 workers at a given worksite.
• Part-time employees now have the same protections under the law as full-time employees. They should be counted as employees when determining an employer’s WARN obligations.
• Employers must provide discharged employees with one week of severance pay for each year of service.

Employers subject to WARN requirements are strongly encouraged to familiarize themselves with the complete changes to the law.

Businesses with a majority owner who identifies as LGBTQ+ can now apply for certification as a LGBTQ+-owned business. Certification can make a business eligible to participate in select set-aside or goal-based contracting initiatives offered by State agencies. Certification can also provide a competitive advantage when bidding for contracts elsewhere. Other eligibility criteria apply.

Employers willing to hire and train dislocated workers with identifiable skills gaps can receive up to $20,000 in wage reimbursement per worker. Through the Return and Earn program, employers are reimbursed for 50% of the wages paid for regular hours worked during their training period.

Training periods can last up to six months, and wage reimbursement is capped at $20,000 per Return and Earn employee. Prospective employers must receive NJDOL approval for their training plan in order to be eligible for the wage reimbursement.

A recently enacted law eliminates the requirement for recognized federal S corporations to make a separate S corporation election with New Jersey. Federal S corporations will be automatically recognized as S corporations by New Jersey unless the corporation opts out. To opt out, 100% of the shareholders must consent. The entity may opt out at any time during the tax year or at any time on or before the due date or extended due date of the S corporation return.

The Division of Taxation has published a technical bulletin and FAQ document to assist companies with the resulting procedural changes.

The New Jersey Economic Development Authority is seeking a health care services provider, an Institution of Higher Education (IHE), and a Trenton-based Multi-Service Organization (MSO) to serve as initial anchor tenants at the Trenton-based Maternal and Infant Health Center. Organizations may also express interest in providing direct services or establishing partnerships with the Center or the selected anchor tenants. 

Questions are due April 17th, 2023 at 2:00 p.m. Proposals are due May 8th, 2023 at 2:00 p.m.