The bill amends New Jersey law to exempt stipends and clothing allowances received by volunteer first responders from certain payroll and income taxes. It introduces a new definition for "volunteer first responder," which encompasses volunteer firefighters and emergency service organization members, and specifies that these individuals will not be eligible for temporary disability benefits or family temporary disability leave if they only receive nominal fees or reimbursements for their services. This ensures that volunteer first responders are not required to contribute to the temporary disability and family leave funds, although they will still contribute to the State unemployment compensation fund.

Furthermore, the bill updates the definition of "covered employer" to include the State of New Jersey and its institutions under the unemployment compensation law. It clarifies the roles of the Division of Temporary Disability and Family Leave Insurance within the Department of Labor and Workforce Development, affirming that the authority exercised by the director is recognized as being performed by the division. Overall, the bill aims to alleviate the tax burdens on volunteer first responders while maintaining their volunteer status, with the new provisions taking effect immediately for taxable years beginning after January 1 of the year following its enactment.

Statutes affected:
Introduced: 43:21-27