New Jersey Short Term Disability

This state-mandated Short Term- Disability plan provides benefits to eligible NJ employees who are unable to work due to a non-occupational illness or injury. Even employers who are located outside of NJ but have NJ employees must provide TDB insurance to their NJ workers. New Jersey allows employers to privatize their TDB coverage. Employers can opt out for coverage with the state plan or with a private carrier.

All companies operating in New Jersey is subject to TDB law. In general, all employers who are covered under Unemployment must also offer TDB to its employees.

In order to be eligible for TDB benefits, an employee must have had at least 20 base weeks of NJ covered employment, or earned at least $5,200 in covered employment during the 52 week period immediately preceding the week in which the disability began. A base week is a calendar week in the base year during which the employee earned $103 or more in covered earnings.

No, where employees live has no bearing on whether they can receive TDB benefits. Employees must work in New Jersey for an employer in order to be eligible for TDB.

Usually the plan is funded by both the employer and employee contributions. Employees contribute the first .50% up to the taxable wage base.

The taxability of TDB benefits depends on the employer/employee contribution. The portion of premium that employees contribute is non-taxable.

Employers in New Jersey automatically participate in the state TDB plan, unless they elect coverage through an approved private plan. The State must approve all such plans. The private plan cannot be more restrictive, offer lower benefits, or require more employee contributions then the state plan. A TDB plan can only move from the State on calendar quarters- January 1, April 1, July 1, or October 1.

We are currently only taking quote requests for groups over 50 lives. In order for us to get a quote we need the following information: • Copy of the most recent three years AC174’s • Current male & female employee count or a copy of the current and complete New Jersey employee census. Census should include employee’s date of birth, gender, and annual salary.