Paid time off prior to disability and family leave
Employers are not prohibited from requiring employees to use accrued paid time off before claiming
Temporary Disability Insurance benets. Employers may not require employees to use leave mandated
under the NJ Earned Sick Leave law (learn more at mysickdays.nj.gov).
The State of NJ may only require state employees to use up to two weeks of accrued sick time before
receiving Temporary Disability Insurance benets, although the State of NJ may not require state
employees to use their last week of sick time before receiving Temporary Disability Insurance benets.
Employees may choose to use accrued paid time off before claiming Family Leave benets, although
employers cannot require it. If an employee chooses to use paid time off before claiming Family Leave
Insurance benets, it will not reduce the maximum duration of benets to which the employee is entitled.
Is our company/organization chargeable?
For Temporary Disability Insurance claims, benets are charged against the experience rating account of
the last employer the applicant worked for prior to the start of their claim. The law provides no alternate
criteria for liability such as length of employment, if work was considered full- or part-time employment,
amount of earnings, or circumstances surrounding separation with the last employer. For Family Leave
Insurance claims, there is no charge against the employer’s experience rating.
What do I need to know about income taxes?
Temporary Disability Insurance: Year-end statements are available online for employers to download in
January for the preceding calendar year. Only a portion of the Temporary Disability Insurance benets paid
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: Every January, Form 1099-G is available online for all employees who received
Family Leave Insurance benets during the preceding year to download and use when completing their
federal tax return. These benets 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 can transition back
into the workplace on a partial schedule and still receive partial Temporary Disability Insurance benets
(as of June 2020).
Family Leave Insurance benets for part-time employees
Employees with more than one job may collect Family Leave Insurance benets in relation to leave taken
from work with one employer while continuing to work for another, provided that the employee does not
exceed their usual work schedule in the second job. The employee’s weekly benet rate will be based only
on wages from the employment from which they are taking leave. (As of July 1, 2020)
The application
It is the employee’s responsibility to complete Parts A and B of the application, and
Parts C & D, if applicable, for Family Leave Insurance. We encourage the employer to
assist the employee in the process, but it is the employee’s responsibility to submit a
complete application.