Nearly 98% of all business owners in New Jersey may not realize that they can save money and receive better service by privatizing their disability insurance in NJ. For years, disability insurance in New Jersey State has been known for slow service, a complicated claims process and a lack of flexibility in payment options for claimants.
Additionally, there’s a 7-day waiting period before employees receive a check following a claim. All of these delays and challenges can put undue strain on your human resources or Human Capital Management (HCM) department as they strive to act as an insurance agent on top of all their other tasks.
Working with a licensed broker for your NJ state disability insurance helps eliminate most of the pain points associated with providing this statutory benefit to your employees.
What You Need to Know About Privatizing NJ State Disability Insurance
Statutory disability insurance in NJ is a shared benefit, which means that employers and employees can split the premiums costs for coverage. If you write your plan through the State of New Jersey, employees are required to contribute to the plan. However, if you privatize TDB coverage in New Jersey, you have the option, as an employer, of covering the full cost of the benefits for your employees. This makes private TDB coverage a powerful recruiting tool, since employees get to keep more of what they earn as take-home pay should you opt to cover the benefit cost for them.
However, be aware that if the employer covers the cost of TDB premiums, the employee will then be taxed on the benefits if they go out on short-term disability. On the other hand, if the employee covers a portion of the premiums out of pre-tax pay (withholding taxes) the taxable percentage of their TDI benefits check may be reduced.
Employers can only opt to cover premiums for employees through a private plan; the state plan requires employee contributions. Apart from this difference, New Jersey State legislation mandates that any private plan offers coverage:
- With benefits payouts equal to or greater than the state plan
- Of equal or longer duration than NJ disability insurance through the state
- With premiums equal to or lower than the state plan
In essence, by privatizing TDB coverage, you can be assured of receiving benefits that are the same or better than what you’d get from the state, for the same cost or less. You can also save money on two of the state assessments.
Let EZTDB shop your plan around for the lowest rates possible and added advantages, including savings on ancillary benefits and personalized service.
As a trusted broker with 40+ years of relationships with top carriers approved by the state of New Jersey to write TDB, we have helped $1.7 million people save money and get better service with their private TDB plan.
3 Surprising Benefits of Privatizing NJ State Disability Insurance
It’s surprising that only 2% of New Jersey business owners have recognized the significant advantages of privatizing TDB coverage – especially since it is easier than ever now privatize your coverage with a single phone call to EZTDB.
Let’s look at some of the advantages of writing your disability insurance in New Jersey through one of EZTDB’s trusted carriers.
Save money – Our customers save an average of 25% on their TDB coverage by privatizing their plan.
Enjoy personalized service – EZTDB uses state-of-the-art technology to stay in touch with our customers. Our 24/7 chat is always available to help you with questions or to get started writing your private TDB policy today. Our insurance experts have been in this industry for decades and stay on the leading edge of news and changes in the industry. We manage your policies, including sending quarterly invoices and reminders, and ensuring your application to privatize TDB gets in the right hands at the state level for approval.
Enjoy faster, more flexible claims – If you or one of your employees needs to file a claim for temporary disability insurance, EZDTB is here to help. Plus, many of our top-rated insurance carriers offer immediate payouts, instead of the seven-day waiting period mandated by the state. You can choose from a debit card, check or direct deposit to receive your payments. You can also set your benefits schedule, which can help claimants budget better and manage their money during a difficult time.
FAQs About NJ Disability Insurance
Still have questions about the advantages of privatizing your disability insurance in New Jersey? Read on…
Is My Business Required to Provide NJ Disability Insurance?
All employers in the state of New Jersey with one or more employees and a payroll of at least $1,000 are required by law to write statutory temporary disability insurance for all full-time and many part-time employees, providing they meet the minimum income requirements to qualify.
For instance, to qualify in 2021, employees must have worked at least 20 weeks earning a minimum of $220 weekly or a combined total of $11,000 in the base year, or the 52 weeks prior to filing a temporary disability claim.
What If I Have Remote Workers Who Reside in New Jersey?
In this era of increased remote work, New Jersey businesses may not fully understand whether they need to provide NJ disability benefits to employees who work out-of-state.
If an employer is not based in New Jersey but has qualified employees working in the state who pay New Jersey taxes, the employer must provide New Jersey disability insurance for them. Similarly, if an employer is headquartered in New Jersey or has an office there but has employees working remotely in other states or commuting from neighboring states, that employer must provide NJ state disability insurance for all its employees who consider the New Jersey location their home office.
How Do I Privatize My New Jersey State Disability Plan?
Privatizing your New Jersey state disability plan is easier than ever with help from the experts at EZTDB. Since 2019, the state has waived the signature requirement from employees to switch plans. That means one less piece of paperwork to deal with. You don’t have to go through the process of educating your employees on the vast advantages of privatizing TDB.
Simply provide EZTDB with your AC174.1 form, along with the number of lives, male and female, and their salaries. You can find information on how to take this important first step in privatizing NJ disability insurance in this blog post. Of course, the representatives at EZTDB are always here to help.
Once we have the information necessary, we take care of the rest. We will shop your policy around to find the best value, and even present opportunities to enrich your benefits package with ancillary lines of coverage such as life insurance, dental, vision, and long-term disability.
Connect with us today to save money while delivering better benefits to your New Jersey employees with private disability insurance in New Jersey.