New Jersey Announces New Rates for Temporary Disability Benefits in 2020

Read on for an important announcement for business owners and employers regarding the premium and benefits increase for temporary disability benefits in New Jersey. 

New Jersey State has introduced a rate hike, increased from 17 cents to 26 cents for every $100 in taxable wages for 2020, effective from January 1, 2021. In addition to that, the limit on wages, on which taxes are levied for TDB and FLI—has also increased from 28 times the statewide current average weekly wage ($33,700) to 107 times the statewide AWW (approximately $131,100).

Concurrent with the rate hike, the maximum temporary disability benefits or FLI benefit has also increased, from $638 to $860 per week. Reports suggest that partial TDB benefits will also be available.

Have You Privatized Your Temporary Disability Benefits in New Jersey Yet?

Earlier this year, New Jersey expanded Family Leave Insurance (FLI) benefits as part of its TDB package, and also made it easier for employers to privatize Temporary Disability benefits insurance.

Prior to 2020, employers had to obtain employees’ consent to write private temporary disability benefits, which prevented many employers from enjoying the better service, faster payouts, and cost savings that come with a private plan. 

Now that New Jersey has waived the signature requirement, employers can easily opt-out of the State plan and look for better plans provided by private insurance carriers.

Employee Protection Does Not Have To Be Expensive

As an employer, employee protection against possible injuries and illnesses is extremely important. Employees will perform better knowing they have peace-of-mind of not just job protection (through the Federal Family and Medical Leave Act, or FMLA), but also income protection if they are unable to work due to an off-the-job injury or illness. However, this income protection for employers and employees, alike, does not necessarily have to be expensive.

To prevent yourself from rate hikes and save more on premiums, businesses should look for a TDB plan that is just right for them.

EZTDB, as your New Jersey insurance broker, allows you to achieve exactly that! We beat the state rate by providing benefits better or equal to the state insurance fund with a higher level of customer service.

Robust yet cost-effective benefits packages are one of the best ways to recruit and retain top talent in this ever-changing world. Get in touch with EZTDB today for a temporary disability benefits insurance plan that is affordable and just right for you.