You are correct the NJ box 16 wages are increased by the amount of Family Leave Insurance premiums. FLI premiums are post-NJ tax and therefore included in NJ box 16 wages. Thus when/if family leave benefits are taken they are not taxed by NJ.
To handle correctly in TurboTax the NJ FLI should be a box 14 entry and select "NJ FLI" from the box 14 category dropdown.
NJ state line boxes 15-17 should only have NJ, the state ID number, the state wages, the state income tax withheld.
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