Officially announced on September 24, 2020, by the NJ Department of Labor and Workforce Development, the 2021 employee contribution rate will be set at 0.47% of an employee’s taxable wage base; and the employee taxable wage base for 2021 will be $138,200. This comes out to a maximum contribution for employees of $649.54 per year.
The 2021 taxable wage base for employers is $36,200.
Unlike the state plan, which provides employer and employee rates separately, ShelterPoint provides a total rate for its contributory plans, which is a combined rate of the employee contribution rate and employer contribution rate. To determine the employer rate for a ShelterPoint plan, simply subtract the employee contribution rate from the total (combined) rate.
Temporary Disability Insurance Benefits will continue to be set at 85% of the covered employees average weekly wage (AWW) over 12 weeks in most cases, capped at $903/week as of January 1st, 2021. Read more about NJ’s expanded benefits effective July 2020 here.
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This blog post is for informational purposes only and is not intended to provide legal counsel.
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 descred. It is not a contract. Available in NJ only. ShelterPoint Life provides Temporary Disability Insurance private plans and does not provide Family Leave Insurance private plans. 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.
ShelterPoint Life Insurance Company (principal office in Garden City, NY) in: NJ (form# TDB-P-NJ)
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