In accordance with P.L.2008, c.17, which was signed into law by Governor Corzine on May 2, 2008, your employees will be covered for Family Leave Insurance (FLI) benefits beginning in 2009. Some important facts regarding FLI:
- The law applies to all private and governmental employers subject to the “Unemployment Compensation Law,” (R.S.43:21-1 et seq.), including local governmental employers who have chosen not to elect disability insurance coverage under the New Jersey Temporary Disability Benefits Law
- There is no employer contribution to the program. However, beginning January 1, 2009 you will be required to withhold 0.09% (0.0009) of your employees’ taxable wages as defined in the Unemployment Compensation Law. This is the same wage upon which the withholding for unemployment compensation is based ($27,700 in 2008; the 2009 figure will be available after September 1, 2008). The withholding rate increases to 0.12% (0.0012) beginning in 2010.
- You will report the wages and deductions and submit payment with Form NJ-927, Employer’s Quarterly Report.
- In lieu of the state FLI plan, you may choose to provide self-coverage or arrange to have your employees covered by a private insurance carrier. Both of these alternatives require prior approval by the Division of Temporary Disability Insurance.
- Beginning July 1, 2009, your employees may apply for up to six weeks of FLI benefits during leave taken to provide care for a sick family member or to care for a newborn or newly adopted child. Eligible applicants who are covered by the state FLI plan will receive weekly benefits amounting to no more than two-thirds of their weekly pay, subject to the same maximum as temporary disability insurance (TDI) for an individual’s own disability (the maximum weekly benefit rate for TDI is $524.00 in 2008).
- Governmental employers please note that even if you have chosen not to elect coverage for benefits during your employees’ own disability under the New Jersey Temporary Disability Benefits Law, there is no such exemption for FLI.
For more information, please visit our website:
