What Are the New Jersey SUI/SDI Tax Limits?
Understand New Jersey's 2023 employee payroll tax limits. See how the rates and wage caps for state unemployment and disability insurance affect your pay.
In New Jersey, employers are required to make deductions from their employees’ paychecks for state-run insurance programs. These payroll taxes fund benefits that workers can access under specific circumstances, such as unemployment or the need to take medical leave. The two primary programs are State Unemployment Insurance (SUI) and Temporary Disability Insurance (SDI), which includes Family Leave Insurance (FLI). Each of these programs has distinct contribution rates and wage limits that are subject to change annually.
New Jersey State Unemployment Insurance (SUI)
State Unemployment Insurance, or SUI, is a fund designed to provide temporary financial assistance to workers who have lost their jobs through no fault of their own. In New Jersey, it is funded by contributions from both employers and employees.
The SUI tax is applied to an employee’s wages up to a certain annual limit, known as the wage base. For the calendar year 2025, the SUI wage base in New Jersey is $43,400. This means that an employee only pays SUI tax on the first $43,400 they earn in a year.
The employee tax rate for SUI in 2025 is 0.3825%. Therefore, the maximum SUI tax an employee will pay in 2025 is $165.99. Employers also contribute to the SUI fund, but their rates are variable and based on their company’s history with unemployment claims.
New Jersey Temporary Disability Insurance (SDI)
Temporary Disability Insurance, or SDI, provides partial wage replacement to eligible workers who are unable to work due to a non-work-related illness, injury, or other disability, including pregnancy. This program is funded solely through employee payroll deductions.
For 2025, the wage base for SDI is significantly higher than the SUI limit, set at $165,900. This is the maximum amount of an employee’s earnings subject to the SDI tax for the year.
After two years of a 0% contribution rate, the employee contribution rate for the Temporary Disability Insurance program is 0.23% for 2025. Based on this rate, the maximum annual SDI tax paid by an employee for the year is $381.57.
New Jersey Family Leave Insurance (FLI)
Family Leave Insurance, or FLI, is a component of the state’s disability benefits program that provides payments to workers who need to take time off to bond with a new child or to care for a seriously ill family member. Like the main disability program, FLI is funded by employee payroll deductions.
The wage base for FLI in 2025 is the same as the SDI wage base, which is $165,900. This means that an employee’s earnings up to this amount are subject to the FLI tax.
The employee tax rate for FLI in 2025 is 0.33%. For 2025, the maximum amount an employee will pay into the FLI fund is $547.47.
Calculating Your Total Contribution
To understand the full impact of these state-mandated payroll taxes, it is useful to combine the maximum possible contributions for each program. This calculation reveals the total amount an employee earning at or above the highest wage base will pay in 2025.
The total maximum contribution is the sum of the individual maximums for SUI, SDI, and FLI. For 2025, the maximum SUI contribution is $165.99, the maximum SDI contribution is $381.57, and the maximum FLI contribution is $547.47.
Adding these amounts together gives a total maximum contribution of $1,095.03 for 2025. This figure represents the highest possible amount an employee will contribute to these three state insurance programs during the year. An employee’s actual contribution will be lower if their total annual earnings are less than the established wage bases.