New Jersey TDB (Temporary Disability Benefits) Coverage

Since 1948, the State of New Jersey has required employers, with few exceptions, to provide their employees with Short Term Disability Benefits (TDB).   The Maximum Weekly Benefit, Annual Taxable Wage Base and Employee Contribution Rate all change annually on January 1st based on Statewide Averages.  Most Employers have coverage through the New Jersey State Fund since they are automatically enrolled in the NJ State Fund upon completion of their registration as an Employer.

*Maximum Weekly Benefit 66 2/3% of average weekly wage, maximum of $615 per week
Maximum Taxable Wage (TW) Base $32,600
Maximum Employee Contribution $.20/$100 of TW eff 1/1/16
Employer Contribution Between .10/$100 of TW – .75/$100 of TW
State Assessment Fee to Employer Subject to annual adjustment
Maximum Duration of Benefits 26 Weeks
Benefit Waiting Period Benefits begin on the 8th Day of Disability for both Accident and Sickness

*Enriched benefits and out of state coverage available

  • Employers and Employees contribute toward the cost of the NJ TDB
  • Employee contributions are made through payroll deduction
  • Employers are also responsible for paying the NJ TDB Assessment Surcharge which is an additional factor of annual taxable wages, the factor charged also changes annually.

Allow the experts at Reuben Warner Associates to illustrate the advantages of privatizing NJ TDB coverage.  Our markets generally look for groups with at least 20 employees working in NJ, including both Full Time and Part Time.

Currently the State of NJ requires Employers to gather a Majority Written Consent from employees to privatize if the employees are contributing.  The experts at Reuben Warner Associates have an enrollment team ready and available to assist our brokers in achieving this requirement.

Private Insurance Carrier State  Fund
Toll Free 800 Number for Claims Yes Not Available
Access to Claim Examiner Assigned to Policyholder Yes Not Available
State Assessment Fees None, Private Carrier will pay this fee on behalf of the employer for the policy years covered. Yes
Availability to Increase Weekly Benefits Yes Not Available
Availability to Extend Coverage to Employees working outside NJ in Non Statutory Locations Yes Not Available
Additional Services such as Claim Diagnostic Reports, W2 Services, FICA Match Services etc Yes
(Available on a case by case basis)
Not Available
Multi-Year Rate Guarantees Yes (subject to loss experience) Not Available
Average Claim Turnaround Time 3 – 5 Business Days Unknown
Frequency of Claim Payments Private Insurers issue Disability Benefits Weekly State Fund issues Disability Benefits Bi-Weekly
Broker Commissions Available Yes No