New Jersey payroll taxes include State Unemployment Insurance (SUI) and State Disability Insurance (SDI). Unlike federal or state income taxes, there are annual limits on the amount of SUI/SDI tax an employee must pay. For 2018, these limits total $237.59, with SUI accounting for $173.56 and SDI at $64.03.
If you are laid off, you can file for unemployment insurance. However, if you are fired from your job, you may not qualify for benefits. In these circumstances, a claims examiner will investigate the situation and determine whether there was any disqualifying behavior on your part. Misconduct is divided into three levels of severity: simple, severe and gross. Simple misconduct disqualifies a person from collecting unemployment insurance for seven weeks after firing. After that time, eligibility for benefits is restored.
When you are on unemployment, you must actively search for a job. Regular unemployment claims are restricted to 26 weeks of benefits.
Temporary disability payments are available for those who are pregnant, or have an illness or injury — not caused by the job — preventing them from working. If the injury or illness was the result of the job, you must file for workers' compensation. Temporary disability benefits are available for a maximum of 26 weeks. For pregnant women, temporary disability payments are generally for the four weeks prior to expected delivery and six weeks after the actual delivery date. If there are complications, the doctor may certify a longer period of disability either prior to or after childbirth.
Maximum Weekly Benefits for SUI and SDI
SUI and SDI are there for workers when they lose their jobs or suffer a temporary disability. Each year, maximum benefit rates are set by the state. For 2018, the maximum weekly benefit for unemployed workers is $681, while the maximum weekly rate for temporary disability is $637.
Claiming Credit for Excess SUI/SDI Taxes
Those who had two or more employers during the year may end up contributing more than the maximum amount in SUI/SDI taxes. If that's the case, it's possible to claim a credit by filing form NJ-2450. All the information necessary to fill out the form is available on your W-2s. You can also file NJ-2450 to receive a credit for excess contributions to Family Leave insurance. However, if you only had one employer and that employer deducted too much money from your paychecks for SUI/SDI, don't use NJ-2450. You must contact your employer and obtain a refund.
- NJ Department of Labor: Rates
- State of NJ Department of the Treasury: NJ Income Tax – Other Credits (UI/DI/FLI)
- State of NJ Department of the Treasury: NJ2450
- NJ Department of Labor and Workforce Development: Division of Employer Accounts 2018 Rates
- State of NJ: Unemployment & Disability
- State of New Jersey: Temporary Disability Insurance Program