If you hired a nanny in New Jersey, the federal stuff is the same as anywhere else, but NJ adds two state-administered insurance programs that quietly come out of every paycheck: Temporary Disability Insurance (TDI, often called TDB after its law, the Temporary Disability Benefits Law) and Family Leave Insurance (FLI).
Most newbie household employers either don't know they exist or assume they have to set up a separate insurance carrier the way New York requires. Good news for NJ: by default, both programs are run by the state, so coverage happens automatically through your normal payroll registration. No private insurance company to chase down.
The short answer: NJ Temporary Disability (TDB) and Family Leave (FLI) are state-administered. You register once with the NJ Department of Labor (the same registration you do for state unemployment), then withhold the right amounts each pay period. 2026 employee contribution: 0.19% for TDB + 0.23% for FLI. The new-employer TDB rate is 0.50% on the first $44,800 ($224 maximum); an experienced employer uses the TDB rate on its July-June contribution notice. FLI has zero employer share.
What is TDB (Temporary Disability Benefits)?
Temporary Disability Benefits is NJ's short-term disability insurance for non-work injuries and illnesses. If your nanny breaks an ankle, has surgery, or recovers from a difficult pregnancy, TDB replaces a portion of their lost wages while they're out.
The program is administered by the NJ Department of Labor and Workforce Development, and it covers up to 26 weeks of disability per benefit year. After a 7-day waiting period, your nanny can apply directly to the state, with no paperwork on your end. Benefits are paid via a debit card mailed to them.
Because TDB is funded by both employer and employee contributions, you'll see it as a deduction on the nanny's pay stub plus a separate employer-side line item that comes out of your pocket.
What is FLI (Family Leave Insurance)?
Family Leave Insurance is NJ's paid family leave program, active since 2009 and expanded since. It pays your nanny when they need time off to:
- Bond with a new child (birth, adoption, or foster placement)
- Care for a family member with a serious health condition
- Address situations related to domestic or sexual violence
FLI covers up to 12 weeks per 12-month period. Like TDB, the state administers it directly, so your nanny applies to NJ DOL when they need leave.
FLI is fully employee-funded: 100% of the premium comes from the nanny's paycheck. There's no employer contribution.
Where do you actually pay TDB and FLI?
You remit both to the NJ Department of Labor and Workforce Development through your standard NJ employer account (the same one you use for state unemployment). There's no separate carrier or filing.
Most household employers default to the state plan, but NJ does technically allow private plans approved by the Division of Insurance. In practice, almost no household employers go that route. The savings are minimal and the administrative overhead isn't worth it for a single nanny.
Track your nanny's pay freeHow much TDB and FLI cost in 2026
For an NJ nanny earning $50,000/year, the annual breakdown:
| Item | Annual cost | Who pays |
|---|---|---|
| TDB employee | $95.00 (0.19% × $50,000) | Nanny via payroll deduction |
| FLI employee | $115.00 (0.23% × $50,000) | Nanny via payroll deduction |
| TDB employer | $224 at the 0.50% new-employer rate | You |
| Total annual | $434 at the new-employer rate |
The employer-side TDB rate varies between 0.10% and 0.75% based on your account's experience rating with NJ DOL. The published new-employer rate is exactly 0.50%, not an arbitrary midpoint. The wage base is the first $44,800 per employee. Once NJ DOL assigns your account a rate, use the rate on that notice rather than the default estimate.
For different wage levels:
| Annual nanny wages | TDB withheld from nanny | FLI withheld from nanny |
|---|---|---|
| $20,000 | $38.00 | $46.00 |
| $50,000 | $95.00 | $115.00 |
| $100,000 | $190.00 | $230.00 |
| $171,100+ | $325.09 (capped) | $393.53 (capped) |
Employee contributions cap at $171,100 of wages. Anything above that doesn't pay TDB or FLI.
How to get registered
NJ TDB/FLI registration is bundled with state unemployment insurance, so you handle it once:
- Get an EIN if you don't have one. Federal first.
- Register once, with Form NJ-REG. It is filed online with the Division of Revenue and Enterprise Services, and that one registration gives you a single New Jersey taxpayer ID covering unemployment, TDB, FLI and income tax withholding. There is no separate registration with each agency.
- Set up payroll withholding for both programs at the rates above.
- File once a year. A household files Form NJ-927-H (the Domestic Employer's Annual Report) and Form WR-30 (the wage report) electronically by January 31 for the year before, or the next business day if the 31st falls on a weekend or holiday. The NJ-927-H carries your TDB, FLI and unemployment contributions together with any income tax you withheld.
The whole NJ-side setup is one workflow. Different from NY, which requires a separate insurance carrier on top of state taxes.
What NannyKeeper handles for NJ employers
NannyKeeper calculates employee TDB and FLI deductions on every paycheck and includes the published 0.50% new-employer TDB estimate. Pay stubs label the employee deductions by their official names, "Temporary Disability Insurance (TDI)" and "Family Leave Insurance (FLI)", so your nanny can see what's being withheld and why.
Each pay period, the system applies the published employee rates to the right wage caps. Employee contributions automatically stop at $325.09 (TDB) and $393.53 (FLI) per year so high-earning nannies don't keep getting deducted past the legal maximum. NannyKeeper does not yet ingest an experienced employer's July-June TDB notice automatically, so confirm the displayed employer estimate against your NJ DOL notice.
What NannyKeeper does not do today:
- Register you with Form NJ-REG
- File your annual NJ-927-H and WR-30 with the state
- Handle private-plan applications if you opt out of the state plan
- Replace the new-employer TDB estimate with an experienced-account rate unless you enter and verify the notice
The first one is a 15-minute task you do once. After that, NJ TDB and FLI run on autopilot through normal payroll.
FAQ
Is TDB the same as workers' compensation?
No. Workers' compensation covers injuries that happen on the job. TDB covers injuries and illnesses that happen off the job. NJ household employers usually need both: workers' comp through a private carrier and TDB through the state plan (or an approved private plan).
Can I opt for a private TDB or FLI plan instead?
Technically yes, but almost no household employers do. Private plans require approval from the NJ Division of Insurance and ongoing administration. The state plan is the default and the simplest path for one or two nanny employers.
Does my nanny qualify for benefits right away?
Not immediately. To file a TDB claim, your nanny needs to have earned a minimum amount in their "base year" (the four most recent quarters before they apply). For 2026, that's $310 per week for 20 weeks, or $15,500 total. FLI uses the same earnings test.
What if my nanny works less than 20 hours a week?
NJ TDB and FLI cover all employees regardless of hours, including part-time work. The contribution rates apply to all wages up to the wage cap.
Do I file anything separate for TDB or FLI?
No. TDB, FLI and unemployment contributions all go on one annual return, Form NJ-927-H, filed with your WR-30 wage report by January 31. One return and one payment cover all three programs, and the WR-30 goes in alongside it. A family that also has business employees can't use the NJ-927-H and files the quarterly NJ-927 instead.
What happens if I file late?
New Jersey charges a penalty for a late contribution report: $10 a day for the first five days, then $10 a day or 25% of the contributions due, whichever is less. Contributions paid late also carry interest of 1.25% a month from the due date, and the Department of Labor says that interest can't be waived. A WR-30 filed late, or one that leaves out or misreports an employee, draws its own penalty for each employee affected, unless you had reasonable cause. File and pay as soon as you catch the miss. You can ask in writing, within a year of being notified, for the penalty (not the interest) to be abated for good cause.
Does FLI guarantee my nanny their job back when leave ends?
FLI itself only pays a benefit. NJ's separate job-protection law (the New Jersey Family Leave Act, or NJFLA) applies to employers with 30+ employees, and federal FMLA applies to employers with 50+. Household employers with one or two nannies fall below both thresholds, so neither law requires you to hold the position. Your nanny can still receive FLI benefits while on leave, and most families bring the nanny back, but the legal obligation isn't there.
Is TDB or FLI taxable income to my nanny?
TDB is generally exempt from federal income tax when it's paid to your nanny by the state plan. FLI is taxable as federal income but exempt from NJ state income tax. Your nanny will receive a 1099-G from NJ DOL for any FLI benefits they received during the year. NannyKeeper doesn't issue these forms. They come directly from the state.
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