Increase in 2020 Taxable Wage Base - January 1, 2020

Dear New Jersey Employer:

As you may know, your taxable wage base will be adjusted for the upcoming calendar year on Jan. 1, 2020. But what you may not be aware of is a significant adjustment in the taxable wage base for your employees in the coming year to accommodate benefit increases that take effect on July 1, 2020.

Employers’ taxable wage base for Unemployment and Temporary Disability Insurance will be $35,300 for 2020. Your employees’ taxable wage base for Unemployment Insurance will also be $35,300.  However, your employees’ taxable wage base for both Temporary Disability and Family Leave Insurance will be $134,900.

As an employer, you are responsible for withholding the proper amount of Unemployment, Temporary Disability and Family Leave Insurance contributions for your employees.

Note that the recent changes in the Temporary Disability and Family Leave Insurance laws are designed to allow your employees the time and funding that they need to heal from an injury, recover from a birth, bond with a new child, or care for a family member.

Please be sure to alert your payroll staff or payroll vendor to these important changes. To learn more about these and other benefits, please visit: nj.gov/labor.

Sincerely,

Evelyn Rivera

Director, Employer Accounts

NJ Department of Labor and Workforce Development