Employers must participate in these State public insurance programs and deduct payroll taxes for employees working in NJ, or employers may choose to provide employees coverage through a private insurance plan that meets NJ requirements. The federal government is exempt. Temporary Disability Insurance is optional for local governments (for example counties, municipalities, and school districts).
State plan or state-approved private plan
Paid medical leave:
- Employer: Rate varies from 0.1% to 0.75% of $41,100 (adjusts to $42,300 in 2024) wage cap
- No Employee contribution required (no change for 2024)
Paid family leave:
- 0.06% of $156,800 taxable wages (adjusts to 0.09% of $161,400 effective 01/01/2024)
- 100% employee funded
Employer funds the additional cost of the private plan above the employee maximums. The employer can pay all or part of the employee contribution.
Worked 20 weeks earning at least $260 weekly or have earned a combined total of $13,000 in the base year.
For 2024, adjusts to $283 weekly or have earned a combined total of $14,200 in the base year.