On Tuesday we reported that the state made some changes to how you apply for pregnancy-related temporary disability and family leave benefits.
The new rules are meant to make it easier to apply and faster to receive a payment.
You had lots of questions, and we tackled some of them below.
What is family leave insurance?
Family leave insurance is a state-run program that pays benefits to new parents taking time off work to bond with a child or to a worker who is caring for a seriously ill family member.
Ten years ago, New Jersey became the second state to offer paid family leave. But over the years, researchers have found the program is greatly underutilized. That’s why there are major updates in store next summer.
Temporary disability insurance acts as state-run short-term disability for New Jersey workers who cannot work because of an illness, injury, pregnancy or some other disability that is not work-related. The program will temporarily replace some, but not all, of your lost wages.
Who qualifies for temporary disability and family leave insurance?
You’re eligible to receive benefits if you are paying into the programs through an automatic payroll deduction at work.
You must also have to have been working for at least 20 weeks with at least $172 in weekly wages or you have to have earned at least $8,600 in the preceding 12 months.
Family leave insurance covers more than just expecting mothers. While both mothers and fathers are eligible to bond with a newborn, parents can also qualify to care for a newly adopted child.
Plus, as of February, the state greatly expanded the definition of family for workers who are caring for a sick or injured relative. That list now includes parents, spouses, children — including adult children, parents-in-law, siblings, grandparents, grandchildren, domestic partners, any blood relative and anyone you consider to be like family.
Previously, only children, parents, spouses, domestic partners and civil union partners were eligible.
What if you work in New Jersey but live out of state?
The rule is, according to the Department of Labor and Workforce Development, you qualify as long as your wages are generated in New Jersey. That also means you are not eligible if you live in New Jersey and work out of state.
How much is the benefit?
Both programs pay out benefits equal to two-thirds of your weekly wages, up to $650 a week, for up to six weeks.
If approved, you will receive a prepaid debit card in the mail.
Does family leave insurance protect your job?
Under a new rule that took effect in June, the Family Leave Act includes job protections for workers at companies with 30 or more employees.
Who pays for these programs?
Family leave insurance is completely funded by New Jersey workers through a payroll deduction, similar to how you pay into unemployment insurance.
This year, every worker will contribute 0.08 percent on the first $34,400 of their taxable wages — up to $27.52.
Both employees and employers contribute to the temporary disability insurance program. In 2019, a worker will contribute 0.17 percent on their first $34,400 in taxable wages, capped at $58.48.
What changed this week?
Two new laws revised how the programs are administered.
Both are designed to speed up and ease the process of applying for and actually receiving benefits. Family leave insurance, especially, has been criticized for taking too long to pay out benefits, with some applicants saying they didn’t receive money until they had already returned to work.
The law requires the state to automatically process an application for family leave insurance after you apply for pregnancy-related temporary disability benefits, saving you the hassle of completing a second application. If you have applied for temporary disability for a pregnancy, you can still postpone or opt out of family leave benefits.
New Jersey’s expectant mothers are eligible for up to four weeks of temporary disability benefits before they deliver and up to six weeks of family leave benefits (eight weeks for a c-section) after.
The second law allows you to submit some claims for temporary disability insurance — including leaves for pregnancy and scheduled medical procedures — and family leave insurance up to 60 days before the actual claim period if you know when you expect to begin leave from work.
They did not make any changes to benefit levels. For those, you’ll have to wait until next summer.
When will the payouts change?
Beginning July 1, the time period that you’re able to collect benefits under family leave insurance doubles to 12 weeks.
In addition, payouts will be bigger for both temporary disability and family leave, increasing to 85 percent of your weekly wage, up to a maximum of $860 a week.
This is a big boost over the program’s current limitations, under which you can receive benefits equal to two-thirds of your weekly wages up to $650 a week for six weeks.
That means instead of receiving a maximum of $3,900 over six weeks, you will be eligible for up to $10,320 over 12 weeks.
Critics have long advocated for better benefits, saying the low reimbursement levels shut out many low- and middle-income families who can’t afford to get by on just a fraction of their wages.
How much is that going to cost?
The expanded benefits come at a price.
This law adjusts the formula for calculating the deduction to tax the first $131,000 in wages.
The state labor department estimated the maximum payroll deduction for temporary disability insurance will rise from $58.48 this year to $235.80 next year, while the maximum deduction for family leave insurance will increase from $27.52 this year to $117.90 next year.
The increases break down like this:
For the two programs combined, the current payment is $86 for workers making $34,400 or more.
That payment will rise to $92.88 for a worker making $34,400. A worker making $60,000 will kick in $162. And someone making $131,000 or more will pay a total of $353.70.
What about taxes?
Neither benefit is taxed by the state but they are subject to federal taxes.
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