The Director of the Division of Taxation argued that the benefits were paid pursuant to a collective bargaining agreement and therefore were considered taxable wages. The court rejected that argument.
Where a municipality paid an injured worker sick leave Injury (SLI) program benefits, pursuant to a collective bargaining agreement, that portion of the benefit which was reimbursed as workers' compensation by the employee to governmental agency, is not subject to state income tax.
Sa v. Director, Division of Taxation, 2012 WL 2515276 (N.J.Tax), Decided June 29, 2012.
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