New Jersey-2020-A1715-Introduced

An Act imposing contribution requirements on the use of automated customer service kiosks by employers, supplementing Title 54 of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. There is imposed on an employer a contribution requirement for each automated customer service kiosk the employer makes available for customer use in the State in the calendar year in an amount determined pursuant to subsection b. of this section. The contribution shall be due and payable to the Director of the Division of Taxation in the Department of the Treasury, in a form and manner to be prescribed by the director.

b. The amount of the contribution for each automated customer service kiosk the employer makes available for customer use shall be equal to the following: (i) the sum of the combined amounts that would have been payable pursuant to the "unemployment compensation law," R.S.43:21-1 et seq., the "Temporary Disability Benefits Law," P.L.1948, c.110 (C.43:21-25 et al.), and the "Family Leave Act," P.L.1989, c.261 (C.34:11B-1 et seq.) by the employer and an employee of the employer who worked for 2,080 hours in a calendar year earning the State minimum wage established by section 5 of P.L.1966, c.113 (C.34:11-56a4); multiplied by (ii) the number of hours in which an automated customer service kiosk was available for use by customers during the calendar year; (iii) the product of which shall be divided by 2,080.

For purposes of calculating the contribution required by this section, an automated customer service kiosk shall not be deemed an employee.

c. Receipts from the contribution required pursuant to this section shall be deposited in the Unemployment Compensation Fund established pursuant to R.S.43:21-9.

d. The contribution required pursuant to this section shall be governed by the provisions of the State Uniform Tax Procedure Law (R.S.54:48-1 et seq.).

e. As used in this section:

"Automated customer service kiosk" means a self-service station located at an employer's place of business and under the control of the employer, through which a customer may (1) place a request or order to purchase goods or services sold by the employer and with the expectation that the goods will be delivered or services will begin to be provided to the customer at that business location within 60 minutes of the order's placement, or (2) submit payment for goods or services sold by the employer and provided to the customer.

"Employer" means the same as the term is defined in subsection (h) of R.S.43:21-19.

2. a. There is imposed on an employer a contribution requirement for each automated customer service kiosk the employer makes available for customer use in the State in the calendar year in an amount determined pursuant to subsection b. of this section. The contribution shall be due and payable to the Director of the Division of Taxation in the Department of the Treasury, in a form and manner to be prescribed by the director.

b. The amount of the contribution for each automated customer service kiosk the employer makes available for customer use shall be equal to the following: (i) the amount that would have been owed pursuant to the "New Jersey Gross Income Tax Act" (N.J.S.54A:1-1 et seq.) by an employee of the employer who worked for 2,080 hours in a calendar year earning the State minimum wage established by section 5 of P.L.1966, c.113 (C.34:11-56a4); multiplied by (ii) the number of hours in which the automated customer service kiosk was available for use by customers during the calendar year; (iii) the product of which shall be divided by 2,080.

For purposes of calculating the contribution required by this section, an employer shall assume an employee's filing status is single, that the employee claims no credits, deductions, or exemptions other than the $1,000 personal exemption provided pursuant to subsection (a) of N.J.S.54A:3-1, and that the employee has no other source of income.

c. Receipts from the contribution required pursuant to this section shall be deposited in the Property Tax Relief Fund.

d. The contribution required pursuant to this section shall be governed by the provisions of the State Uniform Tax Procedure Law (R.S.54:48-1 et seq.).

e. As used in this section:

"Employer" means the same as the term is defined in subsection (h) of R.S.43:21-19.

3. The director may adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as are necessary to effectuate the purposes of this act.

4. This act shall take effect on the first day of the seventh month next following the date of enactment, but the director may take any anticipatory administrative action in advance of that date as shall be necessary for the implementation of this act.

STATEMENT

This bill requires employers making automated customer service kiosks available for use to make payments in amounts equivalent to certain State taxes and mandatory contributions that would have been paid, had the employer employed an individual or individuals instead of a kiosk.

Specifically, an employer would pay the amounts that the employer and one or more employees earning the State minimum wage would have paid under the "unemployment compensation law," "Temporary Disability Benefits Law," and the "Family Leave Act." In addition, an employer would pay the amount that an employee would have paid under the "New Jersey Gross Income Tax Act." The amounts that would have been paid are assumed based on calculating the number of hours that each kiosk is available for use by customers in a calendar year, assuming further that a kiosk replaces one full-time employee for every 2,080 hours it is available for use by customers in that year (up to approximately 4.2 full-time employees if the kiosk was in continuous use for the entire year). Additional assumptions are required for purposes of calculating the contribution required in place of what would have been paid under the gross income tax. That calculation is based on a hypothetical employee whose gross income tax filing status is single and claims no credits, deductions, or exemptions against the gross income tax other than the $1,000 personal exemption, and who has no other source of income.

Revenues generated by the contributions based on what would have been paid under the "unemployment compensation law," "Temporary Disability Benefits Law," and the "Family Leave Act" are to be deposited in the unemployment compensation fund. Revenues generated by the contributions based on what would have paid under the "New Jersey Gross Income Tax Act" are to be deposited in the property tax relief fund.

As defined in the bill, an automated customer service kiosk is a self-service station located at an employer's place of business and under the control of the employer, through which a customer may (1) place a request or order to purchase goods or services sold by the employer and with the expectation that the goods will be delivered or services will begin to be provided to the customer at that business location within 60 minutes of the order's placement, or (2) submit payment for goods or services sold by the employer and provided to the customer.

It is the sponsor's intent to ensure that employers incur similar State contribution obligations whether accomplishing work with individuals or automated kiosks, so that employers are not incentivized to replace individuals with kiosks. Revenues generated by the contributions based on what would have been paid under the "unemployment compensation law," "Temporary Disability Benefits Law," and the "Family Leave Act" would go into the unemployment compensation fund, where they can support workers who are displaced by automation. Revenues generated by the contributions based on what would have paid under the gross income tax would continue to support school aid and other property tax relief programs, just as the gross income tax does.