Most Recent News:
2019 Yer-End Information and 2020 Preview
Highlights of Recent Payroll News:
- NJ minimum wage will rise to $11 per hour on Jan 1, 2020 and will continue rising annually until it reaches $15.00 in 2024. Please see NJ Min Wage Poster on Payroll & Government Forms page.
- NJ family leave insurance (FLI) is expanding. In July 2020, FLI will double from 6 to 12 weeks and newborn care time off will increase from 42 to 56 days. Wages under the program will increase to 85% of a worker’s average weekly salary. On June 30, 2019, employers with 30 or more employees will be required to hold a claimant’s job until they return to work, which is down from employers with 50 employees.
- NJ Governor Phil Murphy signed a new law reguarding retirement savings. For private sector businesses with more than 25 employees that do not already offer a retirement savings plan, the law mandates the employer offer New Jersey Secure Choice Savings. Employers would be required to enroll new employees within three months after the date of hire at a 3% contribution rate. Employers are not required to provide a match. The employee can opt out of enrollment or choose a different contribution rate. Implementation is set to begin by late March 2021. However, the program’s legislation could extend the timeline by up to 12 months if necessary. Once the program is up and running, employers will have nine months to comply.
- Recently signed into law, employ with at least 20 workers are required to provide pre-tax benefits for commuting expenses. The intention of this law is to encourage workers to take public transit. Although the law takes effect immediately, it will be “inoperative” for a year while the Department of Labor and Workforce Development (DLWD) works out how to implement the rules and regulations for the new benefit.
- The waiting period for earned sick time under NJ Paid Sick Leave (PSL) law was over on 2/26/2019. Under the law, full-time and part-time workers earn paid time off at a rate of one hour for every 30 hours worked up to a maximum of 40 hours. Alternatively, the employer can up front the 40 hours of sick leave at the beginning of each benefit year.
For more information on NJ minimum wage, NJ FLI or NJ PSL please visit https://www.nj.gov/labor/
Please note that Media does not provide accounting or legal advice.
