If you work in New Jersey, you might notice a small deduction on your pay stub labeled “FLI” or “Family Leave Insurance.”
This isn’t a random fee — it’s the New Jersey Family Leave Insurance (FLI) tax, a state program funded by employees to provide paid leave benefits for family caregiving or bonding with a new child.
Let’s look at how it works, what the 2025 rates are, and how it affects your take-home pay.
What Is Family Leave Insurance in New Jersey?
Family Leave Insurance (FLI) allows eligible employees to receive a portion of their wages while taking time off for:
- Caring for a seriously ill or injured family member
- Bonding with a newborn, adopted, or foster child
- Handling certain matters related to domestic or sexual violence
It’s part of New Jersey’s strong worker protection system, alongside Disability Insurance (DI) and Unemployment Insurance (UI).
Unlike unemployment insurance, FLI is funded entirely by employees through payroll deductions.
You can see how this deduction fits with others on your New Jersey payroll tax calculator page.
2025 Family Leave Insurance (FLI) Tax Rate
For 2025, New Jersey set the FLI contribution rate at 0.33% of an employee’s wages, up to the wage base of $165,400.
That means the maximum yearly contribution is $545.82.
| Year | FLI Rate | Wage Base | Max Contribution |
|---|---|---|---|
| 2025 | 0.33% | $165,400 | $545.82 |
| 2024 | 0.09% | $156,800 | $141.12 |
| 2023 | 0.06% | $156,800 | $94.08 |
Once your total earnings reach $165,400, your employer stops withholding FLI for the rest of the year. To see exactly how this deduction affects your take-home pay, try your New Jersey paycheck calculator and get a full breakdown of your payroll taxes.
How the FLI Tax Appears on Your Paycheck
On your paycheck, the FLI deduction typically shows up as:
“FLI – Family Leave Insurance”
Here’s what it looks like in real numbers:
| Gross Pay per Period | Rate (0.33%) | FLI Deduction |
|---|---|---|
| $1,000 | 0.33% | $3.30 |
| $2,500 | 0.33% | $8.25 |
| $5,000 | 0.33% | $16.50 |
So if you earn $75,000 a year, you’ll pay roughly $247.50 annually toward Family Leave Insurance.
How the FLI Tax Affects Your Take-Home Pay
The FLI deduction is one of several state payroll contributions in New Jersey, including:
| Deduction | 2025 Rate | Purpose |
|---|---|---|
| Unemployment Insurance (UI) | 0.3825% | Jobless benefits |
| Disability Insurance (DI) | 0.47% | Temporary disability pay |
| Family Leave Insurance (FLI) | 0.33% | Paid family leave benefits |
| Workforce Development Fund | 0.0425% | Job training programs |
Together, they slightly lower your paycheck — around 1% of your gross pay combined.
You can view how each deduction impacts your net income using the New Jersey salary paycheck calculator.
What the FLI Tax Funds
Your FLI contributions make it possible for New Jersey workers to take paid family leave without financial stress.
When you qualify, you can receive up to 85% of your average weekly wage (capped at the state maximum benefit) for up to 12 weeks per year.
This makes the FLI deduction less of a “tax” and more of an insurance premium — you’re paying for protection if you ever need family leave support.
Reaching the Wage Base Cap
Once your year-to-date earnings reach $165,400, FLI deductions stop automatically.
This gives you a small boost in your take-home pay — about $10–$15 more per paycheck.
If you have multiple jobs and end up paying more than the annual cap, you can file Form NJ-2450 through the New Jersey Division of Taxation for a refund.
How to Check Your FLI Deductions
Here’s how to confirm your Family Leave Insurance contributions:
- Look at your pay stub under “State Taxes” or “Deductions.”
- Find the line labeled “FLI.”
- Multiply your gross pay by 0.0033 (0.33%) — the number should match.
- Check that the deduction stops after you’ve contributed about $545.82 in 2025.
If you’d like to compare your FLI deduction to other taxes, try the New Jersey income tax bracket calculator.
FAQs About the Family Leave Insurance Tax in New Jersey
1. What is the New Jersey Family Leave Insurance tax rate for 2025?
It’s 0.33% on wages up to $165,400, with a maximum contribution of $545.82.
2. Who pays for the FLI tax?
Employees pay the entire contribution; employers do not contribute to the FLI fund.
3. How does it appear on my paycheck?
As “FLI” or “Family Leave Insurance” under state deductions.
4. Does FLI reduce my federal income tax?
No, FLI contributions are not deductible on federal tax returns.
5. What if I paid more than the maximum amount?
You can apply for a refund with Form NJ-2450.
6. How does FLI differ from Disability Insurance (DI)?
DI covers your own illness or injury, while FLI covers caring for family or bonding time.
7. Does every employee have to pay FLI?
Yes, nearly all New Jersey wage earners are covered unless they’re exempt (like certain public employees).
“Understand how New Jersey SDI Tax Affects Your Paycheck and how it differs from family leave contributions.”
“Estimate deductions using the New Jersey Paycheck Deductions Calculator to see how FLI fits into your overall withholding.”
“Learn about New Jersey Unemployment Insurance Tax and its connection with employee benefits.”
“Use the New Jersey Payroll Tax Calculator to include FLI and other mandatory deductions in your paycheck.”
“See your take-home pay after all state deductions with the Gross-to-Net Paycheck Calculator.”
“Check how NJ-W4 Impacts Your Withholding for accurate family leave tax deductions.”
Juanita is the creator behind njpaycheckcalculator.org, dedicated to providing accurate and easy-to-use paycheck calculation tools for New Jersey residents. With a strong focus on clarity and reliability, she helps users understand their paychecks and tax deductions with confidence. Juanita is passionate about simplifying complex financial calculations, empowering users to make informed decisions about their income and budgeting.