1. Implementing Payroll for the United States
  2. New Jersey Family Leave Insurance

New Jersey Family Leave Insurance

New Jersey Family Leave Insurance (FLI) provides a period for workers to:

  • Bond with their newborn or newly adopted child

  • Provide care for a seriously ill family member

Benefits are payable to eligible employees through either the New Jersey State Plan or an approved employer-provided private plan.

Before you implement New Jersey FLI, there are some issues you need to consider.

  • What are the requirements for a state-approved private plan

  • What are the employee eligibility criteria

  • How to opt your organization out of FLI deductions

  • How to exclude individual employees

  • How to cost FLI taxes

  • What wage basis rules it follows

For further info, see the following sections.

Private Plan Requirements

As an employer in New Jersey, you can choose between the plan provided by the state or an approved private plan.

A private FLI plan must:

  1. Provide a benefit amount and benefit duration that equals or exceeds the state plan

  2. Have eligibility requirements equal to or less restrictive than the state plan

  3. Have coverage costs to the worker equal to or less than the cost to workers for state plan coverage

  4. Be approved by the Division of Temporary Disability Insurance

Employee Eligibility Criteria

To be eligible for the New Jersey FLI tax, an employee must:

  1. Have a valid tax card with a tax reporting unit (TRU) association

  2. Have New Jersey identified as their state disability insurance (SDI) state on their tax card

Opt Out Your Organization

To opt an entire organization out of this tax:

  1. To opt out at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.

    To opt out at the TRU level, start the Legal Reporting Unit Calculation Cards task.

  2. Open the calculation card for editing.

  3. In Component Groups, click New Jersey.

  4. In Calculation Components, select State Disability.

    Create it if it doesn't already exist:

    1. In Calculation Components, click Create.

    2. In Create Calculation Component, select State Disability.

    3. Select NJ.

  5. Select Enterable Calculation Values on the Calculation Card.

  6. Choose Exempt from Family Leave Insurance.

  7. In the Value field, enter Yes.

  8. Save your work.

Exclude Individual Employees

To exclude individual employees from this tax:

  1. From My Client Groups, click Payroll.

  2. Click Calculation Cards.

  3. Search for the person, and open their Tax Withholding card for editing.

  4. Select the New Jersey regional tax component.

  5. In Withholding Exemption, select Yes for Exempt from Family Leave Insurance.

  6. Save your work.

Cost the FLI Taxes

To process FLI taxes, cost these predefined elements using the FLI Tax Calculated input value.

  • Family Leave Insurance Employee Tax

  • Family Leave Insurance Employee Tax Not Taken

For further info, see Payroll Costing of Elements for the US in the Help Center.

Wage Basis Rules

When configuring the wage basis rules for NJ FLI, find them under State Disability rather than State FLI in the Component Group Rules task. For further info, see Configure Wage Basis Rules for State Family Leave Insurance in the Help Center.

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