New Jersey employers should make note that as of January 1, 2022, the New Jersey Commissioner of Labor and Workforce Development has set to increase both the maximum weekly temporary disability benefit rate as well as the taxable wage base as outlined below:
- Employee taxable wage cap increase from the current $138,200 annually to $151,900 annually.
- Employer taxable wage cap will increase from $36,200 annually to $39,800 annually.
- The disability benefit itself will increase from the current amount of 85% of the employee’s salary up to a weekly maximum of $903 to a maximum of $993.
Additionally, in accordance with the New Jersey Unemployment Compensation Law, the temporary disability employee contribution rate will decrease from .47% of their NJ taxable wage base to .14% of their NJ taxable wage base.
Due to the state’s simultaneously imposed benefit increase and employee contribution decrease, the difference of .33% NJ taxable wage base rate will be transferred from the employee rate to the employer rate.
These new rates will automatically be applied via PrestigePEO’s payroll system, but should you have any questions concerning this information please reach out to your Payroll Specialist for assistance.