EMPLOYER’S ROLE
Employers must participate in these State public insurance programs and deduct payroll taxes for
employees working in NJ, or employers may choose to provide employees coverage through a private
insurance plan that meets NJ requirements. The federal government is exempt. Temporary Disability
Insurance is optional for local governments (for example, counties, municipalities, and school districts)
but these employers must participate in the State Family Leave Insurance plan or provide a private plan.
Generally, employees that work a signicant amount of time outside of NJ are not covered, but should
still apply to nd out if they are eligible.
As of 2019, employers are not required to complete an “employer portion” of the application. When an
employee is approved for Temporary Disability Insurance or Family Leave Insurance benets, the employer
is sent an approval notice in the mail. Additionally, for employees claiming Temporary Disability Insurance
benets, the employer will receive a “DS-7C” form each time benets are issued and we advise employers
to check it for accuracy. Any incorrect benet payments should be reported to the Division immediately.
We suggest keeping a separate le on each employee receiving Temporary Disability Insurance benets,
and adding the DS-7C received from each benet payment to it. This way you can keep track of the
charges per employee for the life of the claim.
Disclosure of claim information
We may only provide claim information to the employee, unless you are listed as a representative in the
claim application. We reach out to employers for information on an as-needed basis by mailing forms.
Information that we may request from an employer can include:
P Federal employment identication numbers P Paid time off, vacation, or sick time used
P Any intermittent days an employee worked P Employees last date of work
P Conrmation of valid wages
P Wages paid to your employee during their
disability or family leave period
New Jersey Temporary Disability & Family Leave Insurance
WHAT HUMAN RESOURCES & EMPLOYERS
NEED TO KNOW
NJ Temporary Disability Insurance provides cash benets to employees in New Jersey who are
unable to work due to a physical or mental health condition or other disability unrelated to their
work, including pregnancy/childbirth recovery and COVID-19.
NJ Family Leave Insurance provides cash benets to employees in New Jersey who are unable
to work because they need to bond with a new child, care for a family member with a physical
or mental health condition (see the generous denition of “family” under the law at
myleavebenets.nj.gov), or handle certain matters related to domestic or sexual violence.
See our employer toolkit for more information at myleavebenets.nj.gov/employerkit.
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 benets. 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 benets, although the State of NJ may not require state
employees to use their last week of sick time before receiving Temporary Disability Insurance benets.
Employees may choose to use accrued paid time off before claiming Family Leave benets, although
employers cannot require it. If an employee chooses to use paid time off before claiming Family Leave
Insurance benets, it will not reduce the maximum duration of benets to which the employee is entitled.
Is our company/organization chargeable?
For Temporary Disability Insurance claims, benets 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 benets 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 employees W-2.
For Family Leave Insurance: Every January, Form 1099-G is available online for all employees who received
Family Leave Insurance benets during the preceding year to download and use when completing their
federal tax return. These benets 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 benets
(as of June 2020).
Family Leave Insurance benets for part-time employees
Employees with more than one job may collect Family Leave Insurance benets 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 employees weekly benet 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 employees 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 employees responsibility to submit a
complete application.
Benets for new & expecting parents
Temporary Disability Insurance can provide cash benets for pregnant parents
when they need to stop working before giving birth and while recovering afterward.
Parents can transition directly from a Temporary Disability Insurance pregnancy-
related claim to a Family Leave Insurance claim to bond with their newborn baby.
Family Leave Insurance is also available for new fathers, and non-birth parents to
bond with their newborn, or newly adopted child or newly placed foster child.
Benets related to COVID-19
An employee may be eligible for Family Leave Insurance benets if their family
member’s healthcare provider certies that the family member needs care due
to COVID-19. In addition, an employee could be eligible for Temporary Disability
Insurance benets if their healthcare provider certies that they are unable to
work because they were diagnosed with COVID-19 or are at high risk for COVID-19
due to an underlying health condition.
PR-147 (9/21)
Do these programs provide job protection?
These are wage replacement programs and they do not provide job protection. However, your business and
your employee may be covered separately under the Federal Family and Medical Leave Act (FMLA), the New
Jersey Family Leave Act (NJFLA), and/or the New Jersey Security and Financial Empowerment (SAFE) Act.
Please note that a parent may take up to 12 weeks of paid or unpaid job-protected FMLA leave for pregnancy
and recovery from childbirth, and then an additional 12 weeks of paid or unpaid job-protected NJFLA leave
to bond with or care for their baby after their doctor certies they are t to return to work or have exhausted
their FMLA leave (whichever is earlier).
Your employee may be eligible for Temporary Disability Insurance and Family Leave Insurance wage
replacement benets regardless of whether they are covered under these laws. In addition, if an employer
retaliates against an employee for taking or seeking to take these benets, the employee has the right to
take private legal action.
Learn more at myleavebenets.nj.gov/jobprotection.
For more information on Temporary Disability Insurance and Family Leave Insurance see
myleavebenets.nj.gov.
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