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New Jersey Temporary Disability and Family Leave Insurance: Questions and Answers

Can our company/organization be charged?

In cases of Temporary Disability Insurance claims, the benefits are charged to the experience valuation account of the last employer for whom the applicant worked before the start of his claim. The law does not provide for other liability criteria, such as the length of employment, whether the job was considered full-time or part-time, the amount of earnings, or the circumstances surrounding the separation from the last employer. For family leave, the employer's experience rate does not apply.

What should I know about income taxes?

Temporary Disability Insurance: Year-end statements are available online for employers to download in January for the prior calendar year. Only a portion of Temporary Disability Insurance benefits are taxable by the federal government. They are considered third-party sick pay or other wages, and it is your responsibility to report the information on your employee's W-2.

For Family Leave Insurance: Each January, Form 1099-G is available online for all employees who received Family Leave Insurance benefits during the previous year to download and use when filing their federal income tax return. . These benefits are taxable by the federal government.

Partial return to work for Temporary Disability Insurance?

With employer approval, employees who have been unable to work due to a disability may return to work part-time and continue to receive Temporary Disability Insurance benefits (effective June 2020).

Family Leave Insurance Benefits for Part-Time Employees?

Workers with more than one job can collect Family Leave Insurance benefits in respect of leave taken from work with one employer while continuing to work for another, provided the employee does not exceed their regular work hours at the second job. The amount of the worker's weekly benefit will be based solely on the salary of the job from which the leave is taken (as of July 1, 2020).

Benefits for new and future parents?

Temporary Disability Insurance can provide financial benefits to pregnant mothers when they need to stop working before giving birth and while they recover. Parents can go directly from a pregnancy-related Temporary Disability Insurance application to a Family Leave Insurance application to bond with their newborn baby. Family Leave Insurance is also available to new parents and non-biological parents to bond with their newborn, newly adopted child or foster child.

COVID-19 related benefits?

An employee may be entitled to Family Leave Insurance benefits if their relative family member certifies that the family member is in need of care due to COVID-19. Additionally, an employee may be entitled to Temporary Disability Insurance benefits if the doctor certifies that the employee is unable to work because she has COVID-19 or is at high risk of contracting COVID-19 due to an underlying condition.

Do these programs provide employment protection?

These programs are wage replacement and do not provide employment protection. However, your company and your employee may be covered by the Federal Family and Medical Leave Act (FMLA), NJ Family and Family Leave Act (NJFLA), and/or the Security and Financial Empowerment (SAFE) Act.

Note that a parent can take up to 12 weeks of paid or unpaid job-protected FMLA leave for pregnancy and childbirth recovery, and then an additional 12 weeks of paid or unpaid NJFLA job-protected leave to bond with your baby or care for your baby after your doctor certifies that you are fit to return to work or have exhausted your FMLA leave (whichever comes first).

Your employee may be entitled to Temporary Disability Insurance and Family Leave Insurance wage replacement benefits, whether or not he or she is covered by these laws. Additionally, if an employer retaliates against an employee for claiming or attempting to claim these benefits, the employee has the right to take private legal action.

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For more information: Temporary Disability and Family Leave Insurance in New Jersey

Source: New Jersey Temporary Disability and Family Leave Insurance

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