Expanding paid family leave and other leave laws comes with higher costs, but not just for businesses: Their employees will see more in their payroll deductions.
Reporter Samantha Marcus at NJ.com reported yesterday that employees will see the payroll deductions paid family leave and temporary disability insurance increase next year. Percentage wise, the increases are dramatic, but as a part of an employee’s overall salary, the amounts are relatively small.
“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,” Marcus writes.
Read Marcus’ cost breakdown story here.
Gov. Phil Murphy signed the expansion of paid family leave on Feb. 19 that doubled the amount of paid leave an eligible employee can take from six weeks to 12 and increased the weekly benefit rate from 67 percent of pay to 85 percent. The law will also extend protected leave requirements to businesses with as few as 30 employees instead of the 50-employee threshold in place up to now.