5 Things to Know About New Jersey TDB
New Jersey State temporary disability benefits, or New Jersey TDB, is a state-mandated benefit for employees that have experienced a non-work-related injury or illness that prevents them from performing their job functions for up to 26 weeks.
If you are a new business owner in New Jersey or have hired New Jersey employees in your company for the first time, you must provide New Jersey TDB coverage to those employees residing in New Jersey. Here are five things business owners should know about New Jersey TDB.
New Jersey TDB Rates and Benefits Rose in 2021
The NJ Department of Labor and Workforce Development increased TDB premium rates to 0.47% of an employee’s taxable wage base up to $138,200. That means employees will pay a maximum contribution of $649.54. Employers have a taxable wage base of $36,200.
In conjunction with the premium change, New Jersey TDB has increased the benefit to 85% of an employee’s average weekly wage, up to a maximum benefit of $903 per week.
Employees Must File Within 30 Days of the Start of their Illness or Injury
Within 30 days of being declared disabled and unable to work by their own physician, employees must file their claim for New Jersey TDB to maintain eligibility. With a private plan, payouts may begin as quickly as one week after filing a claim, with payments made weekly via check or direct deposit.
Employees Can Claim New Jersey TDB If They Are Temporarily Disabled Due to Pregnancy or Childbirth
In 2021, New Jersey joined the growing list of states offering Family Leave Insurance. Employees of any gender can claim family leave benefits to bond with a newborn in their first year of life. But New Jersey TDB coverage provides partial salary replacement to a birthing parent who is declared temporary disabled due to pregnancy or childbirth.
Pregnant employees can file a claim and collect disability payments as early as four weeks before the expected due date, and up to six weeks after the actual delivery date. An employee’s doctor may certify a longer period of disability, up to the maximum of 26 weeks, before or after delivery, in certain circumstances.
Employers Can Privatize Coverage for Cost Savings and Better Service
Until recently, employers had to obtain signatures from 50% + 1 of their employees to switch their TDB coverage to a private plan. With this signature requirement waived as of 2019, employers and HR departments are free to shop around for better prices and service through a private carrier.
By law, private plans must offer the same – or better – benefits for the same – or lower – premiums as New Jersey State temporary disability benefits offered by the state. It’s easier than ever to save money, enjoy better service, and privatize TDB coverage.
You Can Save Even More by Bundling Other Important Benefits
When you work with a knowledgeable insurance broker to choose a private plan, you can also save money by bundling other benefits with your New Jersey TDB coverage.
As more people came to terms with their own mortality during the global pandemic, the demand for Group Life / AD&D coverage has increased. Dental and vision coverage remain highly coveted benefits, especially in a tight labor market where employees can hold out for the best offer.
Privatizing TDB coverage in New Jersey and building a relationship with an insurance broker who understands the ins and outs of statutory insurance can help you save money and deliver better employee benefits packages to your workers.