New Jersey Small Business Openings Hit Record Highs
Are you a new business owner in New Jersey? Opening a business is exciting as it can set the stage for financial freedom and the opportunity to make a real difference in your community by creating jobs and boosting your local economy. If you opened an ecommerce website or other online business, you’re also creating positive change – for an even broader base of people beyond your local area.
If you’re a new business owner in New Jersey, you may not be aware of some of the legislation mandating benefits you must provide to your employees. It’s smart to consult with an insurance broker like EZ TDB who can help you write statutory benefits like TDI in NJ as well as ancillary benefits that can help you recruit and retain workers in today’s competitive environment.
NJ TDB Insurance Mandatory for All New Jersey Businesses
Any New Jersey business owner is required to provide NJ TDB coverage to any employee who has worked at least 20 weeks in 2021, earning at least $220 weekly, or a combined total of $11,000 across the past four quarters.
NJ TDI is a shared-cost benefit, where both employers and employees contribute to premiums. In 2021, employees contribute 0.47% on the first $138,200 of their earnings. Employers pay premiums based on a taxable wage base of $36,200.
New Jersey workers can claim TDB benefits for up to 12 weeks for a non-work-related injury or illness and can collect 85% of their average weekly wage, up to a cap of $903 per week in 2021.
New Jersey small business owners can save as much as 25% on premiums by privatizing TDB coverage and bundling it with other benefits.
NJ FLI Required for Businesses Over 30 Lives
Along with NJ temporary disability benefits, New Jersey employers must provide Family Leave Insurance (FLI) if they have 30 or more employees. This benefit is written through the state of New Jersey and offers employees up to 85% of their pay, up to a weekly cap of $860 for up to 12 weeks to care for a newborn, adopted or foster child within the first 12 months of their lives together, to care for an ill or disabled family member, or to stay home while a military spouse is deployed.
Ancillary Benefits: Not Mandatory, But Smart
In addition to these statutory benefits, New Jersey small business owners have the option to provide ancillary benefits to their workers. According to a survey by Prudential Insurance, 77% of employees polled said benefits represent a key part of any insurance package, and 52% would leave their job for one with better benefits – as long as they were the right kind.
Ancillary benefits include:
- Group Life / AD&D
- Long term disability (LTD), which begins paying out when NJ TDB ends at 26 weeks
According to the Prudential survey, 69% of employees said they require dental coverage, while 41% listed vision or disability coverage as must-haves. Meanwhile, as the pandemic brought more people in touch with their own mortality, insurance carriers have reported spikes in life insurance sales.
The experts at EZ TDB can help you bundle statutory disability coverage with in-demand ancillary benefits to create enticing employee benefits packages that will help you recruit and retain top talent in your industry to help you compete with other new businesses in your state.
New Business Owners in New Jersey Are Not Alone
You might be surprised to learn that more new businesses opened in 2020 than they have in recent years, dating back to the Great Recession of 2008. An analysis by University of Maryland economist John Haltiwanger, reported by Axios, showed that close to 200,000 new business applications were processed 60 weeks after the beginning of the pandemic.
Unlike other crises, the coronavirus pandemic presented financial opportunities due to a strong stock market and a strong banking sector offering record-low interest rates for lending. While the Paycheck Protection Program helped existing businesses, entrepreneurs found plenty of opportunities to raise capital, whether it came from small business loans, stock market gains, or stimulus checks for taxpayers.
EZ TDB Can Help You Save Money on Statutory Benefits in New Jersey
No matter where the start-up capital came from, most small business owners starting out are operating on a shoestring with a limited budget. EZ TDB can help you privatize your TDB coverage and bundle it with ancillary benefits for increased savings and faster, more flexible payouts.