What is TDB?
The New Jersey Temporary Disability Law (TDB) requires most employers in New Jersey to provide short term disability benefits to their eligible employees who are unable to work due to an Off-the-job injury or illness. New Jersey allows employers to privatize their TDB coverage so you can opt to have your coverage with a private carrier in lieu of the State plan.

What is the benefit?
For 2022, the benefit is 85% of the average weekly salary up to a maximum benefit of $993.00 per week.

What are the wages requirements to submit a claim?
To establish a valid claim, you must have earned a certain amount in New Jersey covered employment during your “base year.” The base year is the 52 weeks immediately before the week in which the disability began. You must have either: Worked 20 calendar weeks in the base year in which you had New Jersey earnings of $240 or more a week or earned $12,000 or more during the base year.

Does the coverage go by the state where you live?
No, where employees live don’t determine their eligibility for TDB benefits. Employees who work in the State of New Jersey would be covered under this plan if the employer is a New Jersey covered employer.

Who is responsible to pay for the New Jersey TDB?
Both the employer and employee contributions toward the cost of the New Jersey TDB plan. For the year 2022, the employee cost is $.14 per $1.00 up to the taxable wage base. The 2022 taxable wage base for the employee is $151,900. So, the yearly maximum cost per employee would be $212.66. The 2022 taxable wage base for the employer is $39,800.

What is needed to quote a New Jersey TDB policy?
AC174.1 – Notice of employer contribution rates (annual report). This report is sent to the employer in late August. Depending on the size of the group, we will need more than one year. Number of males/females, salaried census (gender and salary). If the plan is already with a private carrier, we need three years of premium and loss information.

What are the advantages of writing with a Private Carrier?
Competitive rates, the carrier picks up the Assessments/Taxes, claims service is quicker & personalized. Outstanding customer service.

Why am I covered by the State of New Jersey for Disability Benefits Coverage?
When an employer registers to do business in New Jersey, their State mandated Temporary Disability Benefits coverage automatically defaults to New Jersey State Plan coverage.

Do I have an option to have my N.J. State Disability Coverage with a Private Insurance Carrier?
Yes. The State of New Jersey allows any covered employer to establish a Private Plan of disability benefits through an approved carrier in lieu of having coverage directly through the State plan.

Will my coverage be different under a Private Plan?
No. Under State law, the Private Plan carrier must provide at least the same benefits to your employees that they are receiving through State Plan coverage.

What is the requirement to set up a Private plan?
The State of New Jersey requires that an employer complete an application form to move their coverage to an approved Private plan carrier.