21 October 2022

NJ Temporary Disability 2023 Rate Announcement

Employee and Employer Taxable Wage Base

NJ Temporary Disability 2023 Rate Announcement

The NJ Department of Labor and Workforce Development (LWD) today announced a significant change to the employee contribution for Temporary Disability Insurance (TDI): in 2023, there will be no employee contribution, i.e., 0.00% vs. 0.14% in 2022.  This change effectively makes the TDI program 100% funded by the employer in 2023.  The LWD also announced that Family Leave Insurance (FLI) would continue to be funded 100% by employees at a 0.06% rate for 2023.  

As part of this announcement, the NJ Department of Labor and Workforce Development released the following:

  • The 2023 maximum employee contribution for NJ Temporary Disability Insurance (TDI) will be $0.
  • TDI's updated employer taxable wage base will be $41,100 for 2023.

The rate and taxable wage base data are provided here:

TDI

 

 

 

Employee contribution rate

0.0%

TDI Maximum Employee Contribution

$0

Employer taxable wage base

$41,100

FLI

Employee Contribution Rate

0.06%

FLI Maximum Employee Contribution

$94.08 per year

FLI Employee Taxable Wage Base

$156,800

 

Expert Tip for ShelterPoint Policyholders:
As one of NJ’s approved private plans for Temporary Disability Insurance, ShelterPoint provides a combined total rate for its TDI contributory plans, comprised of the employee contribution rate and employer contribution rate. Given today's announcement, the employer rate determined by ShelterPoint for a TDI plan in 2023 would be ShelterPoint’s total rate.  The employee contributes the same amount whether the employer elects to receive benefits through the state or a ShelterPoint private plan - which in 2023 would be 0.00%.

 

Effective July 2020, TDI benefits provide 85% of the covered employee’s average weekly wage, capped at $1,025/week in 2023 (70% of the state average weekly wage) for a maximum duration of 26 weeks in most cases.  Read more about TDI here.

 

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This blog post is for informational purposes only and is not intended to provide legal counsel. The Temporary Disability Benefits (TDB) Law (Temporary Disability Benefits law (P.L.1948, c.110 (C:43-21-25 et seq.) governs this private plan and its interpretation and administration. All coverage extends up to TDB Law limits reflected in the policy. Please refer to the policy and TDB law for coverage details, a complete listing of covered services, provisions, conditions, exclusions, and terms under which the policy may be continued or cancelled. In the event of conflicting information with the policy and applicable TDB Law, the policy and TDB Law will take precedence over what is shown in this material. Claim payment is not guaranteed; benefit amount depends on wages. Policies have a statutory 7-day waiting period

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