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New Jersey SUI and SDI Rates Setup

Overview

This guide explains how to set up New Jersey State Unemployment Insurance (SUI) and State Disability Insurance (SDI) rates in ProPay. New Jersey assigns these contribution rates on a fiscal year basis, running from July 1st to June 30th.

Note: Tax rates and wage bases change annually. Always verify current rates with the New Jersey Department of Labor at the start of each fiscal year: https://www.nj.gov/labor/ea/employer-services/rate-info/

Pre-programmed Rates

ProPay has already programmed employee rates. No user input is required for these rates. However, rates change annually and on a fiscal year basis (July 1 - June 30).

Important: Always verify current rates with the New Jersey Department of Labor at https://www.nj.gov/labor/ea/employer-services/rate-info/

Employee SUI Rates

Component Information
Employee portion of SUI Check NJ Dept of Labor for current rate
Employee portion of Workforce Development Check NJ Dept of Labor for current rate
Health Care Fund Check NJ Dept of Labor for current rate
Wage Ceiling Check NJ Dept of Labor for current year's limit

Employee SDI Rates (TDI + FLI)

Component Information
Employee SDI rate (TDI) Check NJ Dept of Labor for current rate
Employee portion of Family Leave Insurance (FLI) Check NJ Dept of Labor for current rate
Wage Ceiling Check NJ Dept of Labor for current year's limit

Note: Employees are required to make contributions for TDI and FLI. Employers are not required to contribute to FLI. However, TDI requires employer contributions.

Employer SDI Rate

  • Default rate for new employers: Check NJ Dept of Labor for current rate
  • Variable employer rates: Range varies by employer experience rating
  • Note: Employer SDI rates change on July 1st each year and vary by employer. Consult your rate notification from the state.

2026 Rates

The following rates are effective for calendar year 2026. These employee-paid rates are pre-programmed in ProPay.

Employee TDI and FLI Rates (2026)

Component Rate Notes
TDI (Temporary Disability Insurance) 0.19% Employee-paid
FLI (Family Leave Insurance) 0.23% Employee-paid
Combined Rate 0.42% Total employee contribution
Wage Base $43,300 Maximum taxable wages

Note: These rates apply to wages paid in calendar year 2026. Employer TDI rates vary based on experience rating and are provided in your annual rate notification from the state.

Required Setup Steps

1. Enter Employer SUI and Workforce Rates

Each employer receives notification of their individual SUI and Workforce Development rates annually from the New Jersey Department of Labor.

Employer SUI Rates:

Component Information
Employer portion of SUI Use rate from your state notification
Employer portion of Workforce Development Use rate from your state notification
Health Care Fund Use rate from your state notification
Wage Ceiling Check NJ Dept of Labor for current year's limit

Setup steps:

  1. Go to Employer > Employer Setup > Screen 1 (General Information).
  2. Enter your Workforce Development/training rate from your state notification.
  3. Enter your employer-specific SUI rate from your state notification.

Note: Each employer's SUI rate is different. Use the rate provided in your state notification.

2. Enter Employer SDI Rate (If Different from Default)

  1. Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
  2. If your employer's TDI rate differs from the default, enter the correct rate in the SDI field.
  3. If your employer has private insurance, enter a negative number for the SDI rate.

3. Update Quarterly SDI Rates

Employer SDI rates change on July 1st each year.

  1. Go to Employer > Employer Setup > Screen 1 > Edit Qtly Rates.
  2. Enter the appropriate rate for each quarter.

Family Leave Insurance (FLI)

New Jersey's Family Leave Insurance program is funded through employee contributions. ProPay automatically calculates and withholds FLI contributions as part of the total SDI rate. Check the NJ Dept of Labor website for current FLI rates and wage limits.

Troubleshooting

Rates Not Calculating Correctly

  1. Double-check all entered rates against the official notification from the state.
  2. Go to Employer > Employer Setup > Screen 1 and Screen 3 to ensure you're entering rates in the correct fields.
  3. Verify that you've distinguished between employee and employer portions of each rate.
  4. For SDI rates, confirm whether the employer uses state or private insurance.

Private Insurance Not Calculating Correctly

If your employer uses private insurance for disability coverage:

  • Go to Employer > Employer Setup > Screen 3 and enter a negative number for the SDI rate
  • This will prevent ProPay from withholding state SDI contributions

Quarterly Rate Changes Not Applying

  1. Verify the system date is correct
  2. Go to Employer > Employer Setup > Screen 1 > Edit Qtly Rates and check that you've entered rates for all four quarters
  3. Ensure the effective date for rate changes is July 1st

If problems persist, contact Paysoft support for assistance.

Important Reminders

  • New Jersey uses a fiscal year (July 1 - June 30) for unemployment and disability contribution rates, not a calendar year
  • Each employer receives individual rate notifications annually from the state
  • Employee rates are pre-programmed in ProPay and require no user input
  • Employer rates must be manually entered and updated annually
  • The most current rate information is available on the New Jersey Department of Labor website

Additional Resources

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