Official Site of The State of New Jersey
New Year, New Contribution Amount
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New Jersey workers contribute to the cost of Temporary Disability and Family Leave Insurance through a salary deduction, noted on their paystubs. Workers continue to contribute this deduction until their gross earnings reach a specific amount in a year, known as the wage cap. After the wage cap is met, salary deductions are no longer taken for the remainder of the year.
As of January 1, 2021 the wage cap is increasing from $134,900 to $138,200 per year and the percentage that you contribute has increased for both Temporary Disability and Family Leave Insurance.
How Does This Affect Me?
As of January 1, 2020, workers contribute 0.26% of the first $134,900 earned during the calendar year. That means workers who do not earn $134,900 in a calendar year continue to have deductions taken out year round.
The most that you can contribute for Temporary Disability Insurance in 2020 is $350.74. This contribution is in the form of a salary deduction that your employer takes from your weekly wages.
As of January 2021, workers contribute 0.47% of the first $138,200 earned during the calendar year. That means workers who do not earn $138,200 in a calendar year continue to have deductions taken out year round.
The most that you can contribute for Temporary Disability Insurance in 2021 is $649.54. This contribution is in the form of a salary deduction that your employer takes from your weekly wages.
As of January 1, 2020, workers contribute 0.16% of the first $134,900 earned during the calendar year. That means workers who do not earn $134,900 in a calendar year continue to have deductions taken out year round.
The most that you can contribute for Family Leave Insurance in 2020 is $215.84. This contribution is in the form of a salary deduction that your employer takes from your weekly wages.
As of January 1, 2021, workers contribute 0.28% of the first $138,200 earned during the calendar year. That means workers who do not earn $138,200 in a calendar year continue to have deductions taken out year round.
The most that you can contribute for Family Leave Insurance in 2021 is $386.96. This contribution is in the form of a salary deduction that your employer takes from your weekly wages.
Changes Are Here
Find out what the new law says.
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