New Jersey’s Paid Family Leave Program for Self-Employed Individuals
As of January 1st, 2022, New Jersey has a Paid Family Leave Program but Self-Employed people cannot opt in. If you are self-employed and pay yourself a W-2 you may be eligible for benefits through payroll contributions.
Glossary of Terms:
The amount that a self-employed individual must pay into the program in order to qualify for benefits. Depending on your state this contribution may be quarterly or annually.
The total amount an employee/self-employed person earned in a 52-week period divided by 52
- Ex: If you make $40,000 annually, your average weekly wage is $769.23, which is $40,000 divided by 52.
- If the contribution is .27% of an employee’s/self-employed person’s average weekly wage, if you made $40,000 annually, your contribution would be $108, which is $40,000 times .0027 (which is .27%).
The amount of time you need to pay into the program before you are eligible to apply for PFL benefits.
The type of life events that allow you to apply for PFL benefits.
Amount of benefit to be paid to employee/self-employed person during their PFL.
Length of time covered under PFL.
This is a set of criteria by Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program that caps the amount of earnings each year that are eligible for your social security contributions. Some state’s Paid Family Leave insurance funds use this same threshold to cap contributions into their programs. This cap changes annually. For 2022 the base is $147,000.
Note: The contents of the directory last updated day of 2/15/22. We try our best to have the most up to date information possible, however please double check all information with your state. This directory is for educational purposes only.
Free Guide: Roadmap to Financial Freedom
Are you looking to create a strong financial foundation and are ready for guidance on your next steps? We help parents, self-employed people, and W-2 workers just like you make progress with their financial goals. Fully Funded helps with: debt management, student loans, spending and savings plans, separating business and personal expenses, planning a parental leave, saving for retirement, learning about investments, and more. Get started today!