What is New Jersey Family Leave Insurance Tax?

New Jersey Family Leave Insurance (FLI) tax is a state-mandated payroll deduction that funds wage replacement for employees who need time off to care for a family member or bond with a new child. If you work in New Jersey and want to understand how FLI affects your paycheck, this guide provides clear answers, examples, and practical insights.

Who Pays the FLI Tax?

• Employee-funded: Only employees contribute; employers do not pay into FLI.
• Payroll deduction: The tax is automatically withheld from your paycheck.
• Coverage: All employees who are eligible for New Jersey Temporary Disability Insurance (TDI) contribute.

2025 FLI Tax Rates and Limits

• Employee contribution rate: 0.33% of wages
• Taxable wage base: $165,400
• Maximum annual contribution: $545.82

Example:
If your annual salary is $50,000:
$50,000 x 0.33% = $165 per year contributed to FLI.

Who Can Claim FLI Benefits?

• Parents bonding with a newborn, adopted, or foster child
• Employees caring for a seriously ill family member
• Up to 12 consecutive weeks or 8 weeks intermittent within a 12-month period

Example use case:
Samantha takes 8 weeks off to care for her ill father. Her FLI benefit replaces 85% of her average weekly wage, up to $1,081/week.

How FLI Contributions Are Collected

• Employers withhold the contribution from each paycheck
• Deduction appears alongside Social Security and state disability insurance
• Remitted directly to the state, ensuring funds are available for benefits

Why FLI Matters

• Provides financial security during family caregiving
• Encourages work-life balance without risking lost income
• Fully funded by employees, ensuring sustainability of benefits

Frequently Asked Questions

1. How is New Jersey Family Leave Insurance tax calculated?
It’s 0.33% of your wages up to $165,400. Employers withhold it automatically from your paycheck.

2. Can employers be required to contribute to FLI?
No, FLI is fully employee-funded; employers only handle payroll deductions.

3. How much can I receive from FLI benefits?
Eligible employees receive 85% of their average weekly wages, up to $1,081 per week.

4. Who qualifies for New Jersey FLI benefits?
Workers who contribute to FLI and need leave for bonding with a new child or caring for a seriously ill family member.

5. How long can I take leave with FLI?
Up to 12 consecutive weeks, or 8 weeks intermittently within 12 months.

6. How do I claim FLI benefits?
Submit a claim through the official New Jersey FLI portal, including required documentation.

7. Does FLI tax affect my paycheck net pay?
Yes, it reduces your take-home pay slightly, similar to other payroll taxes, but funds benefits if you need family leave.

This content is designed for New Jersey employees and HR professionals looking to understand, calculate, and plan for FLI contributions and benefits. It provides practical examples, tax data, and actionable insights to make family leave financially manageable.