As we continue to gear up for next year, the 2020 New Jersey Temporary Disability Insurance (TDI) employee contribution rate was officially announced by NJ's Department of Labor and Workforce Development.
The 2020 employee contribution rate will be set at 0.26% of the taxable wage base; and the taxable wage base for employees for 2020 will be $134,900.
This comes out to a maximum contribution of $350.74 per year for employees.
The 2020 taxable wage base for employers will be $35,300.
It is important to note that this is a major change to previous years in which both the employer and employee reportable wage base were the same. The employer rate for an individual policy will be dependent upon what the total rate is for the policy.
Temporary Disability Insurance Benefits will continue to be set at 66 2/3% of the covered employees average weekly wage (AWW), with a new maximum benefit of $667 per week, from January 1st until June 30th, 2020; thereafter the benefit will increase to 85% of the employee’s AWW, capped at 70% of the state average weekly wage (SAWW), to a maximum benefit of $881 per week. Read more about key changes to TDI coming in 2020 here.
Stay tuned, we will continue to supply you with the latest information you need to know during this year of change for New Jersey’s Temporary Disability Insurance. SIGN-UP now to stay up-to-date on all the latest TDI news!
The information in this post is not intended as an offer of coverage (“Invitation to Contract”). It is for illustrative purposes only, providing a general overview of the services described. It is not a contract. Available in NJ only. 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 this 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.
Underwritten by: ShelterPoint Life Insurance Company (principal office in Garden City, NY) in: NJ (form# TDB-P-NJ)