FAMILY LEAVE INSURANCE

In accordance with P.L.2008, c.17, which was signed into Law by Governor Corzine on May 2, 2008, employees will be covered for paid Family Leave Insurance (FLI) beginning in July of 2009.  Some important facts regarding Family Leave Insurance (FLI):

Applies to all private and governmental employers subject to the “Unemployment Compensation Law,” (R.S.43:21-1 et seq.), including local government employers who have chosen not to elect disability coverage under the New Jersey Temporary Disability Benefits Law

There is no employer contribution to the program.  However, beginning January 1, 2009, all employers subject to the “Unemployment Compensation Law,” (R.S.43-21-1 et seq.), will be required to withhold 0.09% (0.0009) of each employees’ taxable wages.  The withholding rate will increase to 0.12% (.0012) beginning in January 2010.

Employers will be required to report the taxable wage and FLI withholdings on the form NJ927 (Employer’s Quarterly Report) and submit quarterly, with payment.

In lieu of the state FLI employers may choose to provide self-insurance or arrange to have 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 employees may apply for up to six weeks of paid Family Leave Insurance benefits to provide care for a sick family member or care for a newborn or newly adopted child.