Frequently Asked Questions About New Jersey TDB

When you privatize your temporary disability insurance (New Jersey TDB), you will receive the same – or better – benefits for the same or lower rates than the state-run program in New Jersey.

To assist business owners making this switch, we answer some of the most frequently asked questions. 

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?

Benefits are 85% of the claimant’s average weekly salary, up to a maximum weekly benefit determined annually by the New Jersey Department of Labor. For 2021, the benefit is 85% of the average weekly salary up to a maximum benefit of $903.00 per week.

What are the wages requirements to submit a claim for New Jersey TDB?

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 prior to the week which the disability began.  You must have:

Worked 20 calendar weeks in the base year in which you had New Jersey earnings of $220 or more a week


Earned $11,000 or more during the base year.

Does the coverage depend on the state where the employee lives?

No. The state where an employee resides doesn’t determine TDB benefit eligibility. Employees who work in the State of New Jersey, regardless of where they live, would be covered under this plan if the employer is a New Jersey covered employer.

Who is responsible to pay for New Jersey TDB?

Both the employer and employee contribute towards the cost of the New Jersey TDB plan. For the year 2021, the employee cost is $.47 per $1.00 up to the taxable wage base. The 2021 taxable wage base for the employee is $138,200. So, the yearly maximum cost per employee would be $649.54. The 2021 taxable wage base for the employer is $36,200.

Am I permitted to write Disability Insurance in New Jersey with a Private Insurance Carrier?

Yes. New Jersey disability law permits all covered employers to find private disability insurance in New Jersey through an approved carrier instead of getting coverage directly through the State plan.

Will my coverage be different under a Private Plan?

Under the State law, the Private Plan carriers must offer at least the same benefits to employees that they receive under the State Plan coverage. Your coverage with a private carrier might be superior to the State Plan. By law, it must be at least as good. 

What are the requirements to set up a private plan?

Employers must visit the New Jersey Department of Labor website and fill out the application in order to download and update their invoice or AC174. Here is the link: 

Our friendly team is happy to assist you with this process to make the switch easier for you. 

What is needed for a business owner to get a quote for a privatized New Jersey TDB policy?

To quote a New Jersey TDB policy, we need a copy of the employer’s AC174.1 – Notice of employer contribution rates (annual report), as stated above.

This report is sent to the employer in late August. Depending on the size of the group, we may need more than one year. We also need a salaried census, which is the gender and salary of all employees. 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?

Writing your NJ TDB with a private carrier yields many benefits. The state mandates that any TDB private plan must offer benefits as good as, or better than, the state, for a rate that is the same as or lower than the state premiums.

When you write TDB with a private carrier, you can be assured of competitive rates, faster claims payouts, outstanding customer service, and personalized treatment. Plus, when you write opt into a private TDB plan, your carrier picks up the Assessments/Taxes so you enjoy added cost savings.

You can reach a representative from EZTDB at any time through our 24/7 online chat, email, or by phone during business hours.

If you are planning to switch to private disability benefits insurance in NJ but have additional questions, reach out to EZTDB today. We will help you find the best disability insurance in New Jersey to meet your specific needs.