Did You Know You Can Cut Costs on New Jersey TDB with a Private Plan?

If you’re a New Jersey business owner, you must provide New Jersey TDB (temporary disability benefits) coverage to all full-time employees. But you don’t have to write your plan through the New Jersey state fund. And you can switch to a private insurance carrier at any point in the year.

In the past, the deadline to switch to a private carrier was April 1, which is when premiums first quarter premiums are due to the state. But with the massive increase in premium rates in 2021, you can switch any time before July 1 and still save money.

The taxable wage base for employees has risen to 0.47% on the first $138,200 of earnings, or a maximum of $649.54. Employers contribute based on employee earnings, maxing out at $35,500 for the company annually. While the employee contribution rate is set by the state, private carriers often offer discounts on employer premiums.

Plus, a private plan gives business owners the option to cover employee premiums as a tool for recruiting and retention.

Even better, private carriers are also covering a portion of the assessment fees for New Jersey business owners, up to $10 per employee annually. It may not sound like a lot, but for any company with more than 100 employees, the savings really adds up. If you could add an extra $1,000 per year to your bottom line, plus save up to 20% on your New Jersey TDB premiums, wouldn’t you make that choice?

Benefits of Privatizing Your Statutory Benefits in NJ

In addition to the cost savings when you write your TDB benefits with a private plan, you’ll also receive personalized service, including the ability to reach your statutory benefits broker via email, phone, or online chat whenever you have questions.

You’ll receive payouts faster, with no waiting period. And claimants will have the option of choosing to receive their benefits via check, direct deposit, or debit card, providing more flexibility and making it easier to budget.

Plus, when you bundle ancillary benefits with your TDB coverage, you could save even more money and gain the convenience of having all your benefits managed by one carrier or broker, giving you one point of contact for questions, policy changes, and payments.

How to Get a Quote for New Jersey TDB

Your white-glove insurance broker from EZTDB, with 45 years experience in the statutory benefits industry, can shop your policy around to find the best rates from our top-rated carriers. We leverage our industry relationships for first-class service and low premiums.

But the first step is your responsibility. First, you must obtain your AC174.1 form from the New Jersey Department of Labor website. We can help you with this process, but because your account is password protected, you’ll need to log in at the New Jersey Department of Labor and Workforce Development Division of Employer Accounts website and create or login to your Employer Access account (formerly called TWES).

Then, we’ll need you to provide us with an employee census that includes the gender, date-of-birth, and salary of every qualified employee.

That’s all it takes – just minutes of work, one phone call, and you could save thousands a year on your disability insurance premiums and ancillary lines of coverage. You no longer need to receive employee opt-in, permission, or signatures to make this money-saving decision for yourself, your business, and your employees.

Reach out to get started before July 1 when your second quarter premiums will come due.