New Jersey Temporary Disability Benefit Law (TDB)
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*** This is an unofficial extract of the benefit schedule of the statutory plan and
reference to the actual statutory regulations is required for the most current, complete
and official plan provisions.
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New Jersey administers its temporary disability law as an adjunct to its unemployment
insurance law. The Temporary Disability Benefits Law covers all employers with one or more
employees and a minimum annual payroll of $1,000. It is optional for government entities.
The contributions rate changes annually. In 1998, employees were required to pay .5% of the
first $19,300 of annual earnings, up to a weekly maximum of $88. New employers must pay a
start-up rate equal to the employee contribution, with subsequent rates varying from .1% to
1.1%, depending on claims experience and condition of the fund. (The IRS has ruled that
employer contributions to the state plan or a private plan are deductible by the employer
and considered taxable income to the employee. Employee contributions to the state fund are
deductible as state taxes, while contributions to a private plan are treated as
nondeductible personal expenses.)
ELIGIBILITY: To be eligible, an employee must have earnings of $138.00 in each of 20
weeks or $8,000 in wages in the preceding 52 weeks.
BENEFITS (1998): Maximum - $364.00 a week, minimum $90.00 based on two-thirds
of employee's average weekly wage.
ELIMINATION PERIOD: Seven (7) days for both accident and sickness. Exception: If
benefits shall be payable for 3 consecutive weeks, then benefits shall also be payable
with respect to the first 7 days thereof.
BENEFIT PERIOD: 26 weeks or after reaching one-third of base pay for the year
preceding disability, whichever is less.
RECURRENT DISABILITY: Two periods of disability due to the same or related causes,
which are not separated by more than 14 days are considered as one period of disability.
EXTENSION OF BENEFITS: Coverage is extended for two (2) weeks following termination
of employment provided the employee does not return to covered employment.
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BRM provides links to disablility information, tax rates, and other insurance related materials |
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