The cost of Temporary Disability Insurance (TDI) depends on each employer group’s particular claims experience and composition, since both the employee and employer taxable wage base play a key role in the premium calculation. In New Jersey, both the employer and employee contribute to the TDI premium, regardless of whether coverage is through the NJ TDI State plan or an approved Private Plan.
The State of NJ does, however, set a maximum of how much an employer may ask employees to contribute to the premium. The taxable wage base for employer and employee, and maximum employee contribution get updated annually and are usually announced in the fall for the following calendar year.
See the current year’s premium and employee contribution here.
ShelterPoint bases the total TDI premium rate only on taxable employer wages, regardless of whether the State Plan includes an employee contribution rate.
Note for policyholders with a contributory Private Plan: While ShelterPoint doesn’t use a combined rate (which would include both employee and employer contribution rates) for its contributory plans, you’ll still need to provide the reportable taxable employee wages up to the State’s annual wage maximum so we can submit your NJ State Assessment fee on your behalf. Keep in mind that you may still be responsible for collecting the employee contribution based upon the State’s prevailing annual taxable wage maximum.
Insurance carriers have built expertise and scalability around administering and paying claims. This focus may bring other advantages such as faster claims turnaround and dedicated claims service – potentially resulting in a better insurance experience for employees. Learn more about Private Plans here - including a step-by-step guide on how to apply.
Rest assured, Private Plan benefits must be equal to or more generous than the NJ TDI State Plan.
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This material is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any program information is based on our knowledge and understanding of NJ’s applicable laws and regulations as of the publication date and may change as regulations evolve or NJ issues updated guidance. Further, this material is for illustrative purposes only, providing a general overview of the services described. It is not a contract nor intended as an offer of coverage.
Policies are subject to Underwriting approval. Policies are reviewed annually and may be cancelled for nonpayment. All coverage extends to limits reflected in the policy. Please refer to the policy for coverage details pursuant to its governing law, including a complete listing of covered services, provisions, conditions, exclusions, limitations, and terms under which the policy may be continued or cancelled. In the event of conflicting information with the policy and its governing Law, the policy and governing Law will take precedence over what is shown in this material. Claim payment is not guaranteed; benefit amount depends on wages.
The Temporary Disability Benefits (TDB) Law (P.L.1948, c.110 (C:43-21-25 et seq.)) and applicable Administrative Code (N.J.A.C. 12:18-1 et seq.) govern this Private Plan and its interpretation and administration. Available in NJ only. Policies have a statutory 7-day waiting period.
Underwritten by: ShelterPoint Life Insurance Company (principal office in Garden City, NY) in: NJ (form# SPL TDB P NJ 0124)