The maximum benefit rates and taxable wage base increased as of Jan. 1, according to the New Jersey Department of Labor and Workforce Development
The first of the year saw the maximum weekly benefit amount for Unemployment Insurance beneficiaries increase to $713, from $696; the maximum weekly benefit for state plan Temporary Disability and Family Leave Insurance claims increased to $667, from $650; and the maximum weekly benefit for Workers’ Compensation rose to $945, from $921.
The rates and wage bases are recalculated each year based on the statewide average weekly wage in accordance with the laws governing these programs. The benefit rates and taxable wage base for 2020 reflect the $1,259.82 average weekly wage for 2018, which rose by 2.6 percent from $1,228.25 in 2017.
The level of wages subject to wage taxes in 2020 increased to $35,300 for employers covered under the Temporary Disability Insurance program and for workers and employers covered under the Unemployment Insurance program, the Workforce Development Partnership Program, and Supplemental Workforce Fund for Basic Skills.
Additionally, a law enacted last year increased the level of wages subject to wage taxes effective Jan. 1 for workers covered under the Temporary Disability and Family Leave Insurance programs, to cover significant increases in these benefits that go into effect later this year, including a higher maximum benefit rate and an extension in the maximum amount of leave available.
The taxable wage base is $134,900 for 2020 for workers contributing to these programs—up from $34,400, or 107 times the statewide average weekly wage, up from 28 times the average weekly wage.
The increase in the maximum weekly benefit rate for Temporary Disability and Family Leave Insurance claims starts July 1, with an increase to $881 from $667.
Also, the maximum amount of continuous leave will increase to 12 weeks, up from six weeks, and the maximum amount of intermittent leave will increase to 56 days, up from 42 days.