The company is quoted a combined rate of 0.12% for New Jersey Temporary Disability Insurance (TDI) coverage (allocated 0.12% for Employee Portion; 0.0% for Employer Portion). For comparison purposes, the employee portion as set by the State for 2022 is 0.14%.
In this case, since the quoted rate for TDI coverage is below the 2022 maximum employee contribution rate of 0.14%, the employer may choose to deduct the full 0.12% from the employee to cover the total cost of coverage. The employer may also choose to pick up all or a portion of the employee’s share, at its discretion. So, in this situation where the total rate is less than the maximum employee contribution rate, an employer cannot collect any amount in excess of the total rate which in this example is 0.12%.