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||85% of average weekly wage, maximum of $903 per week|
|Maximum Taxable Wage (TW) Base||$36,200 (Employer) & $138,200 (Employee)|
|Maximum Employee Contribution||$.47/$100 of TW|
|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 options 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.
The state past legislation on January 31st 2019 that employee consent is no longer required for plans that withhold employee contributions. Employees subject to collective bargaining agreement may still be required to give consent.
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)
|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|