State Disability Insurance Laws – New Jersey

1 State Disability Insurance laws New Jersey State Disability Insurance benefits are also called temporary Disability Insurance benefits and short-term Disability Insurance benefits. The chart below summarizes information regarding New Jersey 's requirements, compiled from the agencies responsible for administration of the benefits. PROGRAMS FUNDING BENEFITS. State Temporary Disability Insurance (TDI) Both New Jersey workers and employers contribute to the cost of Weekly Benefit Rate (WBR). All New Jersey employers covered by temporary Disability coverage. the Unemployment Compensation Your weekly benefit rate is calculated Law are also subject to the using your average weekly wage. The Temporary Disability Benefits Law average weekly wage is generally with the exception of certain Cost to Workers based on the earnings in the eight government entities.

2 For 2011, workers contribute at the calendar weeks immediately before the rate of one-half of one percent week in which the Disability begins. ( ) on the first $29,600 The total wages earned during all base A subject employer is automatically (taxable wage base) in covered weeks worked in the eight week period covered under the State Plan unless wages earned during this calendar are divided by the number of such workers are covered under an year. The maximum worker base weeks to obtain the average approved private plan for temporary contribution for 2011 is $ weekly wage. Each claimant is paid Disability benefits. This contribution is in the form of a two-thirds (2/3) of his/her average salary deduction that your employer weekly wage up to the maximum takes from your weekly wages. amount payable set for that calendar A claimant must have had at least 20 year.

3 The maximum weekly benefit calendar weeks in covered New Jersey rate is $559 for disabilities beginning employment in which he/she earned Cost to Employers on or after January 1, 2011. $145 or more (called "base weeks"), or have earned $7,300 or more in Although the taxable wage base is such employment during the "Base the same as for workers, the contribution rate for employers Maximum Benefit Amount (MBA). Year" period (the 52 weeks immediately before the week in which varies from to For The maximum benefit amount which the Disability began). Only covered 2011, employers contribute may be paid for each period of wages earned during the base year between $ and $ on Disability is one-third (1/3) of the total period can be used in determining a the first $ earned by each wages you earned in New Jersey claim.

4 Employee during this calendar year. covered employment during the base year, or 26 times the weekly benefit amount, whichever is less. Benefits may be limited if the On January 1 of each year, the employee does not meet certain taxable wage base changes. eligibility requirements, has benefits from another source, or continues to be paid by the employer while State Disability Insurance laws New Jersey disabled. Neither the employer, nor their Private Plan Coverage workers are required to contribute The Temporary Disability Benefits Law to the State 's Temporary Disability Insurance Trust Fund while the At a minimum, approved private plans allows employers the option of private plan remains in existence. must meet the basic provisions choosing to establish a private plan The cost to the worker for the required of State Plan.

5 Under a private for the payment of temporary private plan cannot be more than it plan: Disability benefits in place of paying benefits under the State Plan. All would be under State Plan. - Benefits paid must be at least private plans must be approved by equal to the amount that would the Division of Temporary Disability be paid on a State Plan claim. Insurance . If employees are to be required to Eligibility requirements cannot be more contribute toward the cost of the restrictive than they would be for a plan, a written election must be State Plan claim. held and a majority of employees mployer/ must agree to the plan prior to the effective date of the plan. Disability During Unemployment Your claim will be processed using Program wages which your New Jersey Disability During Unemployment employers have submitted to our If a worker becomes totally disabled benefits are subject to federal centralized databank.

6 Your monetary and has been out of New Jersey income tax. Upon the claimant's entitlement will be calculated and covered employment for more than written request, a federal income mailed to you. Your monetary 14 days, he or she may be eligible for tax deduction at the rate of 10% determination will list all New Jersey benefits under the Disability During will be made. subject employers for which you Unemployment program. worked during your base period as well as the wages they reported for you. All benefits received under the You should review the monetary Claims filed under this program are Disability During Unemployment determination carefully as soon as you governed by both the Unemployment program are considered taxable for receive it. If you disagree with the Compensation and Disability Benefits federal income tax purposes.

7 At indicated monetary entitlement, or if laws . However, it is essential to the beginning of the year the any employer information is incorrect remember that they are primarily claimant will be sent a Form 1099- or incomplete, you should file a written unemployment Insurance claims, G which will include the Disability appeal. established under Section 4(f) of the benefits as well as any Unemployment Compensation Law. unemployment benefits they To be eligible for benefits, the received during the previous Weekly Benefit Rate claimant must meet all the calendar year. Your weekly benefit amount is 60% of requirements of this Law, and become your average weekly wage earned totally unable to work. The claimant during your base period. For a must also be under the care of a Benefits under the New Jersey Disability that begins in 2011, the legally licensed physician, dentist, Temporary Disability Insurance maximum weekly benefit rate is $598.

8 Podiatrist, optometrist, Program are not taxable for New Not everyone receives the maximum chiropractor, psychologist, certified Jersey State Income Tax purposes. weekly benefit amount. If your weekly nurse midwife, or advanced practice benefit rate is less than $598, your nurse. benefits might be increased if you have unemployed dependents. You will In order to have a valid Disability receive instructions on how to qualify State Disability Insurance laws New Jersey During Unemployment claim, the for these dependency benefits once claimant must have been paid a your claim has been filed. minimum amount of wages while in a job covered by New Jersey 's Disability Maximum Benefit Amount Insurance program during the base You are entitled to one (1) week of period of the claim. Employment with potential benefits for each base week local governments that have not in your base year period during which elected Disability coverage for their you worked in covered employment, workers is not covered for Disability subject to a maximum of 26 weeks.

9 A. benefits nor is out-of- State base week is a week with earnings of employment, even though it is at least $145. covered for unemployment Insurance . If you have an unemployment Insurance claim and become disabled mployer/ while unemployed during the benefit year (a benefit year is one year minus two days period beginning from the date of the claim.), you may be paid Disability During Unemployment benefits against that claim. In general you will receive the same weekly benefit rate as you were receiving on your unemployment Insurance claim. The maximum that you can collect in unemployment Insurance and Disability During Unemployment combined is one and one-half times the maximum benefit amount on your claim. If you do not have a current unemployment Insurance claim, the filing of a valid Disability During Unemployment claim will start a benefit year for you.

10 If you have any questions regarding these laws , please contact your Alamo Insurance representative. 1/11. This Alamo Insurance Legislative Brief is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. 2011 Zywave, Inc. All rights reserved.