The New Jersey Department of Labor and Workforce Development released the calendar year 2019 taxable wage base used for state unemployment insurance (SUI), temporary disability insurance (TDI) and family leave insurance (FLI). The 2019 employer/employee taxable wage base increases to $34,400, up from $33,700 for calendar year 2018.

See the following for the employee SUI, TDI and FLI withholding rates:

Employee SUI-TDI-FLI tax rates

According to the Department's website, the following employee rates are in effect for the remainder of 2018 and for calendar year 2019:

• SUI-employee. Employers must continue to withhold employee SUI taxes through December 31, 2018 from employee wages earned up to the SUI taxable wage base of $33,700 at the worker SUI rate of 0.425% (includes the 0.0425% Workforce Development and Supplemental Workforce Fund surcharge). The rate continues at 0.425% for calendar year 2019, on wages earned up to $34,400. Based on the 2019 taxable wage base of $34,400, an employee's maximum SUI contribution for 2019 will be $146.20.
• TDI. The TDI rate continues at 0.19% through December 31, 2018, and decreases as of January 1, 2019 (for calendar year 2019) to 0.17%. Based on the 2019 taxable wage base of $34,400, an employee's maximum TDI contribution for 2019 will be $58.48.
• FLI. The FLI rate continues at 0.09% for the remainder of 2018, and decreases as of January 1, 2019 (for calendar year 2019) to 0.08%. Based on the 2019 taxable wage base of $34,400, an employee's maximum FLI contribution for 2019 will be $27.52.

The SUI/TDI/FLI taxes must be withheld from employee wages earned in 2018 up to the taxable wage base of $33,700 and for calendar year 2019 up to the taxable wage base of $34,400.

Other SUI, TDI and WC amounts for calendar year 2019

Other SUI, TDI and Workers' Compensation (WC) totals for calendar year 2019 are as follows:

• Maximum Workers' Compensation (WC) weekly benefit rate: $921 (up from $903)
• Maximum Unemployment Insurance (UI) weekly benefits rate: $696 (up from $681)
• Maximum Temporary Disability Insurance (TDI) weekly benefit rate: $650 (up from $637)
• Alternative earnings test amount for UI and TDI : $8,600 (up from $8,500)
• Base week amount: $172 (up from $169)

Value of room and board

In accordance with N.J.A.C. 12:16-4.8, the following are the calculated dollar equivalents for room and board, meals and lodging furnished by employers in lieu of money wages paid for services rendered by employees during the calendar year 2019:

If less than three meals per day, individual meals shall be valued as follows:

These amounts are used when the employer does not assign a value to such payments.

New Jersey fiscal year 2019 SUI rates decreased

As we previously reported, employer SUI tax rates range from 0.4% to 5.4% on Rate Schedule B for FY 2019 (July 1, 2018 through June 30, 2019), down from 0.5% to 5.8% on Rate Schedule C for FY 2018 2018 (July 1, 2017 through June 30, 2018). The new employer rate continues to be 2.8% for fiscal year 2019. (EY Payroll Newsflash Vol. 19, #114, 7-6-2018.)

These rates include the 0.1% Workforce Development Fund rate and the 0.0175% Supplemental Workforce Fund rate.

Although SUI tax rates are assigned on a fiscal year basis, employers should continue using the 2018 SUI taxable wage base of $33,700 for the third and fourth quarters of 2018. The 2019 taxable wage base of $34,400 goes into effect as of the first quarter 2019.

Mailing of FY 2019 rate notices

The FY 2019 tax rate notices were issued during the fourth week of July 2018.

For more information on unemployment taxes in New Jersey, contact the Department at +1 609 633 6400 or see the Department's website.

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EY Payroll News Flash