Family Leave Tax Does Not Apply to Pension Payments

After some confusion among employers, the Office of Legislative Services has recently confirmed (upon request from Assemblyman Samuel D. Thompson) that the Family Leave Insurance tax deductions (used by the State to fund the new Family Leave law) only apply to wages paid for personal services and do not apply to pension payments. Employers therefore should ensure that Family Leave Insurance tax deductions are not applied to any pension payments made to former employees.

Note: This article was published in the March 2009 issue of the New Jersey eAuthority.