Navigating payroll deductions can be complex, and it’s not uncommon to wonder about the various contributions taken from your paycheck. In New Jersey, you might notice deductions for UI, DI, and FLI. This article focuses on clarifying What Is Fli, or Family Leave Insurance, within the context of New Jersey state taxes and potential credits for excess contributions.
Family Leave Insurance (FLI) is a state-mandated program in New Jersey designed to provide financial support to eligible workers who need to take time off from work for family-related reasons. Unlike traditional disability insurance which covers an individual’s own illness or injury, FLI is specifically for when you need to care for others or bond with a new child.
What Does Family Leave Insurance Cover?
New Jersey’s Family Leave Insurance offers benefits in the following situations:
- Bonding with a newborn, newly adopted child, or foster child: This allows parents to take time off work to bond with their new child, fostering crucial early childhood development and family connection.
- Caring for a family member with a serious health condition: If a spouse, child, parent, or other close family member is facing a serious health issue, FLI provides support so you can take time off to care for them without losing crucial income.
Understanding FLI Contributions and Tax Credits
As a New Jersey employee, you contribute to FLI through payroll deductions. These contributions ensure the program’s sustainability and ability to provide benefits to those in need. For the year 2024, the maximum employee contribution for FLI was set at $145.26.
Claiming Credit for Excess FLI Contributions
If you worked for two or more employers in New Jersey during a tax year and, as a result, exceeded the maximum allowed contribution for FLI (along with UI/WF/SWF and DI), you may be eligible for a tax credit when filing your New Jersey state income tax return.
How to Determine if You Overpaid and How to Claim
To claim a credit for excess contributions, you need to assess your W-2 forms from all your New Jersey employers. Here’s how to proceed:
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Review your W-2 forms: Check box 14 or a separate statement on your W-2 for the amounts withheld for UI/WF/SWF, DI, and FLI. Ensure your W-2s include your employer’s New Jersey Taxpayer Identification Number or approved private plan number and clearly state these contribution amounts. Claims may be denied if this information is missing.
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Calculate your total contributions: Sum up the amounts withheld for each category (UI/WF/SWF, DI, and FLI) across all your W-2s.
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Check against maximums: Compare your total contributions to the maximum contribution amounts for the tax year. For 2024, these maximums were:
- UI/WF/SWF: $179.78
- DI: $0
- FLI: $145.26
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Complete Form NJ-2450: If your total contributions exceed the maximums, you can claim a credit by filling out Form NJ-2450, “Employee’s Claim for Credit for Excess Contributions.” This form is specifically designed for claiming credits for excess UI/DI/FLI contributions. You can find the form on the New Jersey Division of Taxation website. Remember to file Form NJ-2450 for the same tax year as the income tax return you are filing.
Important Considerations:
- One Employer: If you only had one employer and believe you overpaid, you cannot file Form NJ-2450. In such cases, you must contact your employer directly to request a refund of the excess contributions.
- Joint Returns: If you are filing a joint tax return and both you and your spouse had excess contributions withheld, you must complete separate NJ-2450 forms for each individual.
- Annual Changes: Be aware that the maximum contribution amounts for UI/WF/SWF, DI, and FLI can change annually. Always refer to the figures for the specific tax year you are filing for. Prior year forms are typically available online for previous tax years if needed.
What if Your Claim is Rejected?
If your claim for a credit using Form NJ-2450 is denied due to not meeting the requirements of the New Jersey Department of Labor and Workforce Development, you are not without recourse. You have the option to refile your claim directly with the Labor Department. To do this, you will need to use Form UC-9A, “Employee’s Claim for Refund of Excess Contributions.” This form can be found on the New Jersey Department of Labor and Workforce Development website.
Further Information
For more detailed information about Unemployment Insurance, Disability Insurance, and Family Leave Insurance contributions and related topics, you can visit the official website of the New Jersey Department of Labor and Workforce Development.
In Conclusion
Understanding what FLI is and how it operates in New Jersey is crucial for employees in the state. By being aware of your contributions and the potential for tax credits, you can ensure you are taking advantage of all available benefits and correctly filing your state income tax return. If you believe you have overpaid into FLI, carefully review your W-2s and explore whether filing Form NJ-2450 is appropriate for your situation.
