New Jersey began its paid household depart plan in 2009 with the New Jersey Household Depart Act. New Jersey paid household depart (PFL) made NJ the second state (after California) to go a PFL coverage. In the event you’re a New Jersey employer, it’s essential to learn about your duties.
Q&A for New Jersey paid household depart
New Jersey paid household depart is a state-mandated program that gives New Jersey staff with as much as 12 weeks of paid depart for qualifying life occasions. Learn on for a Q&A on NJ PFL.
What are an employer’s duties?
Employers don’t should contribute to New Jersey paid household depart. However, you do have a number of duties to handle.
Employers should:
- Show Short-term Incapacity and Household Depart Insurance coverage posters
- Present written discover of PFL when an worker is employed, requests data, or lets you recognize they want paid depart
- Report worker’s quarterly earnings to the state of New Jersey
- Monitor the advantages issued to workers
- Confirm that the timeframe offered on an worker’s Discover of Eligibility Determinations (kind D20) is appropriate
- Deduct worker contributions from worker wages and remit to the state
What are the worker contribution charges?
New Jersey paid household depart is funded by way of worker contributions.
New Jersey PFL contributions charges for 2025 are 0.33% of the primary $165,400 in lined wages.
Whereas employers don’t should contribute to NJ PFL, it’s essential to deduct payroll taxes from New Jersey staff.
Who qualifies for NJ PFL?
Any New Jersey worker that contributes to PFL can qualify for NJ PFL. To qualify, workers will need to have paid into this system by way of payroll deductions and meet minimal gross earnings necessities. Staff are additionally eligible when lined by an authorized personal plan.
Some workers are exempt from New Jersey PFL, together with:
- Federal authorities workers
- Religion-based group workers
- Unbiased contractors
- Out-of-state workers
What varieties of depart does New Jersey PFL cowl?
New Jersey PFL covers a number of qualifying life occasions.
Qualifying life occasions embrace:
- Bonding with a new child*, or a brand new baby by way of adoption or foster care
- Offering look after a member of the family with a critical bodily or psychological well being situation
- Dealing with issues associated to home or sexual violence
*Working moms also can apply for momentary incapacity and maternity protection.
How a lot cash do workers obtain whereas on depart?
Paid household depart advantages are based mostly on an worker’s common weekly wage. Staff obtain 85% of their common weekly wages, as much as the yr’s most weekly profit fee.
For 2025, the utmost weekly profit fee is $1,081 per week.
What’s the minimal gross earnings requirement?
Staff should go a minimal gross earnings requirement to obtain their advantages. When reviewing worker claims, the New Jersey Division of Labor and Workforce Improvement considers the gross earnings reported for the 5 accomplished quarters earlier than the depart started. The primary 4 quarters of that point interval act as the bottom yr.
For 2025, an worker will need to have labored for a complete of 20 weeks whereas incomes:
- No less than $303 weekly
- A mixed complete of $15,200 within the 4 quarters of the bottom yr
For instance, if an worker has a declare that’s dated January 2025, their declare is predicated on their reported earnings from October 1, 2023 to September 30, 2024.
Do workers have to make use of their paid household depart all of sudden?
No. Staff can use their advantages all of sudden or intermittently over the course of a 12-month interval.
Staff can gather paid household depart advantages for:
- 12 consecutive weeks in a 12-month interval
- 56 particular person days in a 12-month interval if the depart is intermittent
Staff also can add their accrued PTO to their paid household depart to increase the quantity of their depart.
What are an worker’s duties?
To obtain New Jersey paid depart advantages, workers should:
- Present the New Division of Labor and Workforce Improvement with an software for NJ PFL.
- Give the employer superior discover of their want for PFL:
- 30 day’s discover if the depart is steady
- 15 days prematurely if the depart is intermittent
Does New Jersey tax insurance coverage advantages?
No. Whereas New Jersey doesn’t tax insurance coverage advantages, the federal authorities does.
As soon as workers take paid depart, they need to additionally full Type 1099-G in January of the next yr.
Does NJ PFL supply job safety for workers on depart?
No. New Jersey PFL doesn’t supply job safety whereas an worker is on paid depart.
Staff could also be protected beneath the FMLA.
What occurs if I notice there may be incorrect data on an worker’s declare?
Notify the Division of Short-term Incapacity and Household Depart Insurance coverage instantly for those who discover that issued advantages fall on days your worker labored or acquired trip or sick pay.
Name customer support at (609) 292-7060 or fax a corrected assertion with the worker’s Social Safety quantity to (609) 984-4138.
Can I require workers to make use of accrued paid break day earlier than taking NJ PFL advantages?
No. Whereas your workers might select to make use of their accrued paid break day earlier than receiving advantages from NJ PFL, you may’t require it.
If an worker makes use of their accrued PTO (sick depart or trip time), it won’t scale back the times lined by PFL. As a substitute, an worker can use their accrued PTO together with the utmost PFL advantages they’re allowed to make use of.
Can I supply a personal insurance coverage plan as an alternative of the state plan?
Sure. You may have a personal insurance coverage plan as an alternative of the state plan. The personal insurance coverage plan should be authorized by Non-public Plan Operations with the Division of Short-term Incapacity Insurance coverage.
Non-public plans should meet the fundamental provisions of NJ PFL to qualify. To make use of a personal plan as an alternative of the state plan, the personal plan should:
- Provide paid advantages which might be equal to or larger than the quantity paid on a state plan declare
- Have eligibility necessities that aren’t extra restrictive than these of a state plan
- Provide protection that is the same as or larger than the state plan
Employers or workers lined by a personal plan don’t must contribute to the State’s Short-term Incapacity Insurance coverage Belief Fund whereas lined by the personal plan. And, if workers kind a collective bargaining settlement, they need to maintain a written election. For the plan to be applied, a majority of workers should comply with the plan previous to the efficient date.
How can I set up a personal plan?
There are 3 ways to ascertain a personal plan. You may:
- Work by way of an insurance coverage firm authorized by the New Jersey Division of Banking and Insurance coverage and Non-public Plan Operations earlier than writing a personal plan coverage.
- Set up a self-insured plan you administer. It’s essential to additionally pay worker advantages.
- Select a union welfare fund. The union fund should administer the plan and pay advantages.
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This text has been up to date from its authentic publication date of February 13, 2023.
This isn’t supposed as authorized recommendation; for extra data, please click on right here.