New Jersey Family Leave Insurance (FLI) is an important part of the state's payroll tax system. It provides eligible workers with financial support when they need time away from work to care for a loved one, bond with a new child, or handle certain family-related emergencies.
For employers, Family Leave Insurance involves more than providing leave information. Businesses must calculate employee payroll deductions, follow annual contribution limits, report covered wages, and submit required payroll taxes to the state.
In 2026, the New Jersey Family Leave Insurance employee contribution rate is 0.23%, and the annual taxable wage base is $171,100. The maximum employee contribution is $393.53.
Employers do not make a separate contribution to the state FLI program, but they are responsible for withholding and reporting applicable employee contributions.
This guide explains New Jersey's 2026 FLI payroll tax rules, contribution calculations, filing requirements, deadlines, exemptions, and employer responsibilities.
What Is New Jersey Family Leave Insurance?
New Jersey Family Leave Insurance is a state-administered wage replacement program that provides temporary cash benefits to eligible employees who need time away from work for qualifying family reasons.
The program is administered by the New Jersey Department of Labor and Workforce Development (NJDOL) under the state's Temporary Disability Benefits Law.
Eligible workers may receive Family Leave Insurance benefits when they take time off to bond with a newborn, newly adopted child, or newly placed foster child.
Benefits are also available for caring for a family member with a serious physical or mental health condition and for certain needs related to domestic or sexual violence.
For 2026, eligible employees generally receive 85% of their average weekly wage, up to $1,119 per week. Benefits can last up to 12 consecutive weeks or 56 individual days when leave is taken intermittently within the applicable 12-month period.
Family Leave Insurance is different from New Jersey Temporary Disability Insurance (TDI). TDI generally covers an employee's own qualifying disability, while FLI provides benefits for qualifying family-related leave.
For payroll purposes, employers must treat these programs as separate deductions because their contribution rates and funding requirements are different.
Who Must Pay New Jersey Family Leave Insurance Tax?
New Jersey Family Leave Insurance is funded entirely through employee payroll contributions under the state plan.
This means covered employees pay the FLI tax through deductions from their wages. Employers do not pay a separate state FLI contribution from their own funds.
However, employers are responsible for calculating the proper withholding amount, deducting it from covered employee wages, maintaining accurate payroll records, and remitting the contributions to New Jersey.
For example, a business with 25 covered employees must withhold FLI contributions from their eligible wages even though the business has no direct employer-side FLI tax expense.
The employer still has a legal responsibility to report and submit the withheld amounts correctly.
Who Is Subject to New Jersey Family Leave Insurance Tax?
Most employees whose employment is covered under New Jersey's Temporary Disability Benefits Law are subject to Family Leave Insurance contributions.
Coverage generally includes full-time and part-time employees working in covered New Jersey employment, including workers employed by small businesses. Part-time status alone does not remove an employee from the program.
Employees do not have to live in New Jersey to qualify. For example, a Pennsylvania resident who works in covered employment in New Jersey may still be subject to New Jersey FLI payroll deductions.
A worker's employment location and the applicable state coverage rules matter more than their home address alone.
Independent contractors who are properly classified as self-employed are generally not subject to employee FLI withholding. Certain government workers, employees of faith-based organizations, and other excluded employment categories may also have different coverage rules.
Employers should review their actual workforce classification and state coverage requirements before excluding any employee from FLI contributions.
New Jersey Family Leave Insurance Tax Rate for 2026
The New Jersey FLI employee tax rate for the 2026 calendar year is 0.23%, or $0.0023 for every $1 of covered taxable wages.
This rate applies to eligible employee wages paid from January 1, 2026, through December 31, 2026, up to the annual FLI taxable wage limit.
The rate decreased from 0.33% in 2025 to 0.23% in 2026. Employers should ensure their payroll systems use the correct rate for the year in which wages are paid.
2026 New Jersey FLI Payroll Tax Rates and Limits
| Payroll tax detail | 2026 amount |
|---|---|
| Employee FLI contribution rate | 0.23% |
| Employer FLI contribution rate | 0.00% |
| Employee taxable wage base | $171,100 |
| Maximum annual employee contribution | $393.53 |
| Employer contribution maximum | $0 |
| Contribution period | January 1 to December 31, 2026 |
| Standard employer reporting | Quarterly |
| State plan administrator | NJ Department of Labor and Workforce Development |
Unlike certain New Jersey employer payroll taxes, the state FLI employee contribution rate is not based on an employer's unemployment insurance experience rating.
The 0.23% rate applies statewide to employees covered by the state FLI plan. Employers with approved private plans must follow the terms and contribution requirements of their approved coverage.
New Jersey FLI Taxable Wage Base and Wage Limit for 2026
The New Jersey Family Leave Insurance taxable wage base is the maximum amount of an employee's annual covered wages subject to FLI contributions.
For 2026, the FLI wage base is $171,100.
Employers must calculate FLI withholding on covered wages until an employee reaches this limit during the calendar year. Once the employee's taxable wages reach $171,100, the employer should stop state FLI deductions for the remainder of that year.
The annual contribution maximum is calculated as follows:
$171,100 x 0.0023 = $393.53
Therefore, an employee earning $171,100 or more in covered wages during 2026 should contribute no more than $393.53 to the New Jersey state FLI program through a single employer.
It is important not to confuse the FLI taxable wage base with the lower wage base used for New Jersey Unemployment Insurance and certain other employer payroll contributions.
New Jersey Payroll Tax Wage Base Comparison for 2026
| Payroll tax category | 2026 taxable wage base |
|---|---|
| Employee Family Leave Insurance | $171,100 |
| Employee Temporary Disability Insurance | $171,100 |
| Employee Unemployment Insurance and Workforce Development contributionsEmployee Unemployment Insurance and Workforce Development contributions | $44,800 |
| Employer Unemployment Insurance and Workforce Development contributionsEmployee Unemployment Insurance and Workforce Development contributions | $44,800 |
| Employer Temporary Disability Insurance | $44,800 |
These differences matter when setting up payroll deductions. Using the $44,800 Unemployment Insurance limit for employee FLI would result in underwithholding.
The New Jersey Department of Labor confirms both the $171,100 employee TDI/FLI wage base and the $44,800 wage base for the other listed contribution categories for 2026.
Employer vs. Employee FLI Contributions
New Jersey's Family Leave Insurance funding structure places the contribution cost on covered employees rather than employers.
| Contribution requirement | Employee | Employer |
|---|---|---|
| Pays state FLI contribution | Yes | No |
| 2026 contribution rate | 0.23% | 0.00% |
| Annual contribution limit | $393.53 | $0 |
| Responsible for calculating deductions | No | Yes |
| Responsible for state reporting and remittance | No | Yes |
Employers should distinguish between paying a payroll tax and administering one. Although New Jersey businesses do not have a separate employer FLI contribution, they must still manage the employee deductions and meet the state's reporting requirements.
Employers must also account for other applicable New Jersey payroll contributions, including Unemployment Insurance, Temporary Disability Insurance, and Workforce Development funds. These are separate from FLI and may have employer-specific rates.
In particular, New Jersey employer Unemployment Insurance rates can vary based on the employer's assigned rate and experience. These variable employer rates should not be confused with the fixed 2026 employee FLI contribution rate.
How to Calculate New Jersey Family Leave Insurance Tax
Calculating New Jersey Family Leave Insurance payroll deductions is straightforward when employers use the correct tax rate and track each employee's annual taxable wages.
For 2026, multiply the employee's covered taxable wages by 0.0023. Stop calculating state FLI contributions when the employee reaches the annual wage base of $171,100.
New Jersey FLI Tax Calculation Formula
FLI Tax = Taxable Wages x 0.0023
For each payroll run, taxable wages should be limited to the employee's remaining annual FLI wage base. Employers should also account for rounding to cents and track cumulative contributions throughout the calendar year.
Example 1: Employee Earning $2,500 Biweekly
Suppose a New Jersey employee earns $2,500 every two weeks and has not reached the annual wage limit.
$2,500 x 0.0023 = $5.75
The employer deducts $5.75 from the employee's paycheck for New Jersey Family Leave Insurance.
If the employee receives 26 equal biweekly paychecks during the year, the total annual contribution would be:
$5.75 x 26 = $149.50
Example 2: Employee Earning $200,000 Annually
Consider an employee whose annual covered wages are $200,000.
Although the employee earns more than $171,100, only the first $171,100 is subject to New Jersey FLI tax.
$171,100 x 0.0023 = $393.53
The employee's maximum annual contribution is $393.53, regardless of the additional wages earned from that employer during the year.
Example 3: Employee Reaching the Wage Limit Mid-Paycheck
An employee has already earned $170,000 in covered taxable wages during 2026. Their next paycheck contains another $4,000 of covered wages.
Only $1,100 remains below the annual taxable wage limit.
$1,100 x 0.0023 = $2.53
The correct FLI deduction for this paycheck is $2.53, not $9.20.
After this payment, the employee has reached the 2026 annual contribution limit. No further state FLI contributions should be deducted by that employer for the rest of the calendar year.
Employers should review taxable wage accumulators regularly, especially for employees receiving bonuses, commissions, or other additional compensation.
New Jersey FLI New Employer Tax Rate for 2026
New Jersey does not impose a separate new employer contribution rate for Family Leave Insurance.
The state FLI program is financed entirely through employee contributions. Therefore, both new and established employers have a 0% employer FLI contribution rate.
New employers must still withhold the applicable 0.23% employee contribution when they begin paying covered New Jersey wages.
This is different from New Jersey Unemployment Insurance and Temporary Disability Insurance, which have separate employer contribution requirements.
For example, the state's published 2026 new employer schedule lists a 0.000000 employer FLI rate for both the July 1, 2025, through June 30, 2026, and July 1, 2026, through June 30, 2027, periods.
Employers should review their assigned rates for other New Jersey payroll programs through the state's Employer Access portal rather than treating all state payroll taxes as having the same rate.
New Jersey Employer Registration Requirements
Businesses with employees performing covered work in New Jersey generally need to register with the state before completing their payroll tax reporting obligations.
New Jersey employers register through the Division of Revenue and Enterprise Services using Form NJ-REG.
According to the New Jersey Department of Labor, an established business that employs at least one individual and pays $1,000 or more in wages during a calendar year generally becomes an employer subject to the state's reporting requirements.
Businesses subject to the Federal Unemployment Tax Act may also become subject to New Jersey employer requirements.
After registration, employers should establish their payroll tax account, confirm their New Jersey employer identification number, and configure the required state payroll contributions.
Employers should also establish access to the state's Employer Access system. This allows businesses to review contribution rates, account information, payment history, and employer notices.
If the business changes its name, address, ownership details, or applicable employer information, it may need to update its registration using Form NJ-REG-C or another appropriate state process.
Employers with staff working remotely in New Jersey must also evaluate whether their employees create New Jersey employment tax obligations, even if the business is headquartered elsewhere.
Required New Jersey Family Leave Insurance Forms
New Jersey does not generally require a separate FLI-only quarterly payroll tax return. Instead, employers report FLI contributions through the state's regular employer contribution filing system.
The following forms and documents are relevant to FLI administration.
| Form or document | Purpose | When applicable |
|---|---|---|
| NJ-REG | Registers a business for New Jersey tax and employer obligations | Initial registration |
| NJ-927 | Reports quarterly employer and worker contributions, including FLI | Quarterly for standard covered employers |
| WR-30 | Reports employee wages and base weeks | Quarterly for standard covered employers |
| NJ-927H | Annual contribution report for qualifying household employers | Annual |
| NJ-REG-C | Updates certain employer registration details | When applicable |
| FLI Poster (PR-2) | Provides employees with required Family Leave Insurance information | Covered workplaces |
| NJ-2450 | Employee claim for credit for excess contributions from multiple employers | When applicable to an employee |
| FL-1 | Family Leave Insurance benefit application | Employee benefit claims |
Important Employer Notice Requirements
Covered New Jersey employers must display the Family Leave Insurance poster in a location where employees can clearly see it.
They must also give employees written information about the program when they are hired, request information, or notify the employer that they need family leave.
The employer is not ordinarily required to complete a separate employer section of an employee's state FLI benefit application. However, the business must maintain accurate wage records and respond to state requests when needed.
New Jersey Family Leave Insurance Filing Requirements
Employers covered by New Jersey's Unemployment Compensation Law generally file Forms NJ-927 and WR-30 each calendar quarter.
Form NJ-927 reports applicable payroll contributions, including employee Family Leave Insurance withholding. Form WR-30 provides wage information that the state uses to review employee earnings and determine benefit eligibility.
For 2026, New Jersey considers a base week to be a week in which an employee earns at least $310 in covered wages. Employers should report base weeks accurately because this information can affect an employee's eligibility for state benefits.
The WR-30 generally includes the employee's Social Security number, name, gross quarterly wages, and number of base weeks.
New Jersey requires employers to submit these reports electronically through approved state filing methods.
Employers that remain subject to the reporting requirements must generally file even if they had no payroll during a quarter, unless they have properly ended their reporting liability with the state.
Accurate quarterly wage reporting matters beyond tax compliance. Incorrect wage records can delay Family Leave Insurance claims or affect the benefit amount an employee receives.
Filing and Payment Frequency for New Jersey FLI
For most covered employers, New Jersey Family Leave Insurance contributions are reported and paid quarterly.
Employers calculate and withhold applicable FLI contributions as wages are paid throughout the quarter. They then report and remit the contributions with their regular New Jersey employer payroll tax filing.
Payments can be made through approved electronic methods, including electronic funds transfer, credit card, or e-check.
New Jersey FLI contributions should not be confused with New Jersey Gross Income Tax withholding, which has its own payment rules. The state FLI obligation follows the applicable employer contribution reporting schedule.
Employers that hire only household workers may qualify for special annual filing procedures using Form NJ-927H and the required wage reports.
Important New Jersey FLI Filing Due Dates for 2026
New Jersey requires standard quarterly employer reports and applicable contribution payments to be received by the 30th day of the month following the end of each calendar quarter.
2026 New Jersey FLI Quarterly Tax Deadlines
| Reporting period | Quarter ends | Filing and payment deadline |
|---|---|---|
| Q1 2026 | March 31, 2026 | April 30, 2026 |
| Q2 2026 | June 30, 2026 | July 30, 2026 |
| Q3 2026 | September 30, 2026 | October 30, 2026 |
| Q4 2026 | December 31, 2026 | January 30, 2027 |
New Jersey has an important filing rule that employers should not overlook. The state does not automatically extend these employer contribution deadlines when they fall on a weekend or holiday.
For example, January 30, 2027, falls on a Saturday. Under the state's published rule, the deadline is still January 30 rather than the following Monday.
Employers should schedule electronic submissions and payments early enough to meet the actual deadline.
New Jersey FLI Tax Exemptions and Special Rules
Although New Jersey Family Leave Insurance covers most workers in covered employment, certain categories are excluded or have special requirements.
Federal Employees and Other Excluded Employment
Federal government employees are generally exempt from the New Jersey state FLI program.
Other exclusions may apply to certain faith-based employment, workers performing services outside New Jersey, and individuals who are properly classified as independent contractors.
Public-sector employers may have different coverage arrangements. Local government employees should not automatically be treated as exempt from FLI simply because their employer has different Temporary Disability Insurance rules.
Employers should confirm exclusions through the New Jersey Department of Labor before disabling payroll withholding.
Employers With Approved Private FLI Plans
New Jersey allows qualifying employers to provide Family Leave Insurance through an approved private plan instead of the state plan.
A private plan must receive state approval and provide coverage that meets or exceeds the state's minimum benefit requirements.
Employers using an approved private plan must follow the approved plan's contribution arrangements and reporting obligations. Employee contributions toward private coverage cannot exceed the permitted state-plan cost.
A business cannot simply purchase a private policy and stop state FLI deductions without confirming that the plan is approved and the applicable state contribution obligations have changed.
If an approved private plan ends, state-plan coverage and contribution requirements can resume.
Employees With Multiple Employers
An employee who works for two or more employers during the same calendar year may have FLI contributions withheld by each employer.
This can cause the employee's combined contributions to exceed the annual maximum of $393.53 for 2026.
Eligible employees may claim credit for excess contributions using Form NJ-2450 with their New Jersey income tax return. Qualifying nonresidents may need to follow the state's separate refund process.
If one employer alone deducts more than the permitted maximum, that employer should correct the overwithholding rather than directing the worker to use the multiple-employer credit process.
Special Rules for Household Employers
New Jersey employers who employ only household workers may use Form NJ-927H for annual contribution reporting.
These employers also have special WR-30 submission requirements. The required annual filings and contributions are generally due January 30 of the following year.
Household employers should confirm their classification before relying on the annual filing exception.
2026 Employee Eligibility and Job Protection Changes
For employees seeking FLI benefits in 2026, the general earnings test requires either 20 base weeks with at least $310 in weekly covered earnings or $15,500 in qualifying base-year earnings.
This benefit eligibility requirement does not mean that employees earning less than these amounts are automatically exempt from payroll contributions.
New Jersey also expanded job protection effective July 17, 2026. Eligible workers receiving TDI or FLI benefits may have job restoration protections under the TDI/FLI law when their leave is not otherwise covered by the applicable family and medical leave protection laws.
These protections can apply without minimum employer size or work history requirements under the TDI/FLI provision.
HR teams should review leave policies separately from payroll tax calculations because FLI wage replacement and job protection are related but distinct legal responsibilities.
New Jersey FLI Rules for Remote Employees
Remote employee payroll tax treatment can be more complicated when an employee lives in one state and works for an employer located in another.
For Family Leave Insurance, the key question is whether the employee's services are covered by New Jersey employment law.
A New York company with an employee who works remotely from a home office in New Jersey may have New Jersey payroll tax obligations, even if the employer does not maintain a traditional New Jersey office.
Likewise, a New Jersey business with an employee working entirely in another state should not automatically apply New Jersey FLI withholding without reviewing the employee's work location and coverage rules.
Employees Working in Multiple States
New Jersey uses employment coverage tests to determine the proper state for reporting wages when an employee works in multiple states for the same employer.
These tests are generally considered in the following order: localization of services, base of operations, place of direction and control, and employee residence.
For example, if an employee works primarily in New Jersey and occasionally travels to Pennsylvania for business meetings, their services may remain localized in New Jersey.
However, an employee permanently working from another state may require a different payroll tax setup.
Employers should track employees' actual work locations, review location changes, and confirm the appropriate state coverage before calculating FLI deductions.
New Jersey income tax sourcing rules should not be used as a substitute for the state's employment insurance coverage tests.
Common New Jersey FLI Payroll Mistakes Employers Should Avoid
One common mistake is using an outdated Family Leave Insurance rate. New Jersey changed the employee contribution rate from 0.33% in 2025 to 0.23% in 2026. Payroll systems that continue using the old rate can overwithhold employee wages.
Another mistake is applying the wrong taxable wage base. Employee FLI contributions use the $171,100 limit in 2026, not the lower $44,800 wage base used for certain other New Jersey payroll contributions.
Employers may also forget to stop withholding once an employee reaches the annual limit. This can happen when employees receive bonuses or commissions late in the year.
Other common problems include treating independent contractors as employees without a proper classification review, overlooking remote employees, submitting incorrect base-week information, and failing to reconcile Form WR-30 wage records with payroll totals.
Businesses should also avoid combining FLI and TDI deductions into a single calculation. Although both programs use the same 2026 employee wage base, they have different contribution rates.
Finally, employers should not assume that FLI contributions are no longer required because the company has purchased private leave insurance. Only an approved private FLI arrangement can change the applicable state-plan requirements.
Regular payroll audits can help businesses identify these problems before quarterly filing deadlines.
Penalties and Interest for Late FLI Filing or Payment
New Jersey can assess penalties and interest when employers file required reports late, submit inaccurate information, or fail to pay applicable payroll contributions.
The penalties depend on the type of report and the nature of the violation.
Late NJ-927 Filing Penalties
New Jersey generally charges $10 per day for the first five days a required NJ-927 is late.
After the first five days, additional penalties are assessed under the state's rule of $10 per day or 25% of contributions due, whichever is less.
For late reports showing no contributions due, the state generally imposes $10 per day, up to a maximum of $50.
Interest on Unpaid Payroll Contributions
Unpaid New Jersey employer contributions are subject to interest at 1.25% per month, starting from the payment due date until the state receives payment.
This rate applies to delinquent contributions reported through the state's employer contribution system, not merely to an employer's FLI deduction line.
Late or Incorrect WR-30 Reporting Penalties
| Reporting violation | Penalty |
|---|---|
| First violation | $5 per affected employee |
| Second violation within eight consecutive quarters | $10 per affected employee |
| Third or later violation within eight consecutive quarters | $25 per affected employee |
These penalties may apply to late, incomplete, inaccurate, or improperly submitted wage reports.
Employers with a valid reason for a reporting violation may request a penalty abatement under New Jersey's procedures. However, the state generally does not provide for the waiver of properly assessed interest.
How PayDay Can Help Employers Manage New Jersey FLI
Managing New Jersey Family Leave Insurance requires employers to apply the correct deduction rate, track taxable wages, and maintain accurate payroll records.
PayDay can help businesses simplify these responsibilities through payroll software that supports automated payroll calculations, employee deductions, payroll tax reporting, and related compliance workflows.
For New Jersey employers, a properly configured payroll system can calculate FLI deductions using the applicable 2026 rate and help track each employee's taxable wages against the annual contribution limit.
It can also make payroll reviews more manageable by organizing employee wage records, deductions, and reporting information.
This is especially useful for growing businesses, payroll teams managing employees in multiple states, and employers that need to maintain separate contribution settings for FLI, TDI, and Unemployment Insurance.
By reducing manual calculations and helping organize payroll data, PayDay can support more consistent New Jersey payroll processing.
Employers should still confirm that the software is configured for the correct tax year, state coverage rules, and applicable private plans. Any filing or payment automation should be verified against the platform's available features and the employer's state account requirements.
Frequently Asked Questions About New Jersey Family Leave Insurance
What is the New Jersey Family Leave Insurance tax rate for 2026?
The employee contribution rate is 0.23% of covered taxable wages in 2026. Employers withhold this amount from employee paychecks until the employee reaches the annual wage limit.
What is the maximum NJ FLI employee contribution for 2026?
The maximum employee contribution is $393.53 for the calendar year. It is calculated using the 0.23% contribution rate and the $171,100 taxable wage base.
Do New Jersey employers pay Family Leave Insurance tax?
No. New Jersey's state Family Leave Insurance program is funded entirely by employee contributions. Employers are responsible for withholding, reporting, and remitting the appropriate employee contributions.
Is New Jersey FLI mandatory for small businesses?
Generally, yes. Covered New Jersey employers must withhold applicable FLI contributions regardless of having a small workforce. Employers should confirm their coverage status and any applicable exemptions with the state.
Does New Jersey FLI withholding stop after an employee earns $171,100?
Yes. For the state plan, FLI contributions stop once the employee reaches the 2026 annual taxable wage base of $171,100 with that employer. Payroll systems should reset the annual wage tracking at the start of the new calendar year.
How often must employers file and pay New Jersey FLI contributions?
Most covered employers report and pay applicable contributions quarterly using Form NJ-927 and submit wage information through Form WR-30. The deadlines are April 30, July 30, October 30, and January 30 of the following year.
Are remote employees subject to New Jersey Family Leave Insurance tax?
Remote employees may be subject to NJ FLI if their work is covered by New Jersey employment law. The employer should review the employee's actual work location and the state's multistate employment coverage tests. Living in New Jersey alone does not automatically determine FLI tax liability.
Is New Jersey Family Leave Insurance the same as Temporary Disability Insurance?
No. Family Leave Insurance generally provides cash benefits for qualifying family-related leave, while Temporary Disability Insurance covers an employee's own qualifying disability.
In 2026, the employee TDI rate is 0.19% and the employee FLI rate is 0.23%. Both programs use a $171,100 employee taxable wage base, but their contribution rates and employer funding rules differ.
