New Jersey Family Leave Insurance #

As of January 1, 2009 the State of New Jersey has implemented a Family Leave Insurance (FLI) employee tax. Additional information can be found at: http://lwd.dol.state.nj.us/labor/lwdhome/FamilyLeaveFAQ.html

Vertex has implemented this taxation with an increase of the SUI Employee rate. The base SUI rate of 0.435% plus the FLI rate of 0.09% for a total ‘SUI’ employee rate of 0.515%. The taxable wage base is the same for the SUI and FLI ($28,900 for 2009).

The contribution rate will increase to 0.12% in 2010. The taxable wage base will change annually. The maximum deduction for 2009 is $26.01.

For SUI quarterly reporting the FLI must be reported on a separate line. In order to support the reporting a UserCalc is required to store the FLI amounts into separate pay components. The associated UserCalc is a sample that must be modified and tested for each client.

If the client has already issued a pay in 2009, this UserCalc will self-adjust the year-to-value of the FLI since a 2009 pay may have been already paid. This assumes that the client had installed the 2009 Vertex tax table prior to the first pay issued in 2009 since the FLI rate was included with the 2009 Vertex tables as described above.

UserCalc Notes:

1. Pay issue date must be in 2009 or 2010. By 2011 the Vertex Q series will be implemented. This UserCalc must be disabled once the Q series is implemented.

2. SUI employee deduction must be greater than 0. If employee has reached the maximum or is SUI exempt (Rail employees), do not calculate FLI. Therefore the UserCalc must be placed on pay point ’70-After Govt Calcs’.

3. This calculation will self-adjust.

4. Pay Components in this example

• PC 6660 is SUI employee deduction.
• PC 6670 is the FLI employee deduction.
• PC 6680 is the SUI employee deduction less FLI employee deduction
• PC 8670 is the SUI Employee taxable wage base. This PC holds the taxable wage base for SUI and FLI as the amounts are the same.