New Jersey temporary disability benefits provide an important level or income protection to many people that work in New Jersey. It is important to realize that these benefits must not be overlooked at tax time. The tax-ability of New Jersey Temporary Disability Benefits depends on the employer/employee contribution arrangement. The portion of premium that employees contribute is non-taxable. For example, if employees contribute 50 percent of the premium, then 50 percent of their benefit is non-taxable.
Individuals should consult with their accountant or tax advisor on any tax matters. We are not accountants, CPAs or in the tax advice business. This is only meant for general information about New Jersey Temporary Disability Benefits and what individuals should think about if they were to collect benefits. Some good news is that on the state’s website it indicate that while subject to federal taxes,New Jersey Temporary Disability benefits are not subject to the New Jersey State Income Tax. A link to the state website is here: http://lwd.dol.state.nj.us/labor/tdi/worker/state/sp_tax_info.html
While this post is not the place to get tax advice, New Jersey Temporary Disability Benefits can have tax consequences for businesses and individuals. We can provide solid, experienced advice on the proper amount of disability coverage and how to make sure that you have the adequate protection for your needs and income levels, and provide comparisons and guidance on disability insurance programs over and above New Jersey Temporary Disability Benefits.
New Jersey Temporary Disability Benefits and Beyond
Please contact us with any questions or concerns about disability insurance and your options for securing proper protection. We can provide businesses with ideas to improve benefits for employees. We also find ways for businesses to save money by reviewing options for New Jersey Temporary Disability Benefits offered by private insurance carriers that are often less expensive than buying coverage through the state program.
Please contact us to learn more about how we help businesses both large and small.