N.J. Admin. Code § 12:16-4.2

Current through Register Vol. 56, No. 21, November 4, 2024

Section 12:16-4.2 - Sick leave payments and continuation pay for family leave

(a) Sick leave payments (also known as continuation pay) and continuation pay for family leave made by employers to employees for periods of disability or for periods of family leave are wages within the meaning of the Unemployment Compensation and Temporary Disability Benefits laws for both tax and benefit entitlement purposes.

(b) Those types of sick leave payments and continuation pay for family leave deemed wages and therefore taxable are:

1. Continuation of pay during periods of sickness or injury;

2. Payment of the difference between temporary disability benefits paid under the State Plan or an approved Private Plan and full salary;

3. Payment of the difference between Workers' Compensation benefits and full salary;

4. Payment of unused sick leave made to an employee while still in employment;

5. Payment of the difference between family leave insurance benefits paid under the State plan or an approved private plan and full salary.

(c) Those types of sick leave payments and continuation pay for family leave deemed benefits and therefore non-taxable are:

1. Benefits paid from the State Plan for temporary disability insurance;

2. Benefits paid by an insurance carrier under an approved Private Plan (see 12:16-4.1 0 for exceptions);

3. Benefits paid by a union under an approved Private Plan (see 12:16-4.1 0 for exceptions);

4. Benefits paid by the employer under an approved self-insured Private Plan (see 12:16-4.1 0 for exceptions);

5. Benefits paid for work related injury under Workers' Compensation;

6. Benefits paid to employees in the public sector for work related illness under Sick Leave Injury (SLI);

7. Payment of sick leave made after retirement or separation from employment;

8. Family leave insurance benefits paid from the State plan;

9. Family leave insurance benefits paid by an insurance carrier under an approved private plan (see 12:16-4.1 1 for exceptions);

10. Family leave insurance benefits paid by a union under an approved self-insured private plan (see 12:16-4.1 1 for exceptions); and

11. Family leave insurance benefits paid by the employer under an approved self-insured private plan (see 12:16-4.1 1 for exceptions).

N.J. Admin. Code § 12:16-4.2

Amended by R.1995 d.138, effective 3/6/1995.
See: 27 N.J.R. 61(a), 27 N.J.R. 919(a).
Amended by R.2009 d.20, effective 1/5/2009.
See: 40 N.J.R. 5167(a), 41 N.J.R. 258(a).
Section was "Sick leave payments". In the introductory paragraphs of (a), (b), and (c), inserted "and continuation pay for family leave"; in the introductory paragraph of (a), inserted "or for periods of family leave"; in (b)4 and (c)7, substituted a semicolon for a period at the end; and added (b)5 and (c)8 through (c)11.