The NJ Department of Labor and Workforce Development (LWD) published* the employee contribution rate and taxable wage data for 2024.
What is the NJ Temporary Disability Insurance Employee Contribution Rate for 2024?
As part of this announcement, the labor dept (LWD) released the following updates to other TDI parameters:
- The 2024 maximum employee contribution for TDI will be $0.
- The updated employer taxable wage base will be $42,300 for 2024
|
TDI
|
Employee contribution rate
|
0.0%
|
|
TDI Maximum Employee Contribution
|
$0
|
|
Employer taxable wage base
|
$42,300
|
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. The employee contributes the same amount whether the employer elects to receive benefits through the state or a ShelterPoint private plan - which in 2024 would be $0, since the employee would not be required to contribute to TDI. To determine the employer rate for a ShelterPoint TDI private plan, simply subtract the state-announced employee contribution rate from ShelterPoint’s total rate.
By the way, NJ Family Leave Insurance (NJ FLI)** will continue to be fully funded by employees at a 0.09% rate for 2024, an increase from 0.06% in 2023.
|
FLI
|
Employee Contribution Rate
|
0.09%
|
|
FLI Maximum Employee Contribution
|
$145.26 per year
|
|
FLI Employee Taxable Wage Base
|
$161,400
|
What's the NJ TDI benefit amount?
TDI benefits provide 85% of a covered employee’s average weekly wage, capped at $1,055/week in 2024 (70% of the state average weekly wage) for a maximum duration of 26 weeks in most cases. Read more about TDI here.
SIGN-UP now to stay up-to-date on all the latest NJ TDI news!
*NJ published this data on their website, but it is pending the official release of the LWD promulgation letters
**ShelterPoint does not offer NJ Family Leave Insurance coverage
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