Submitted by Two River Benefits
Below you will find an easily understandable grid that outlines the many changes coming for your New Jersey Disability plans starting in January 2020. The cost of the plans will be increasing above 50% over the entire 2020 year. Most of the increase coming from the minimum wage increase to $11 from the current $10/hour and $8.85 prior to July 2019. The employer will have to pay this increase along with the increase for all employees making over $34,500. The maximum for pay will increase to $131,500 from the current $34,500. I estimate this cost at around 30%+ for both minimum wage and Maximum pay increase for most staffing companies.
The other increase will be for the increase in benefits in the middle of the year- July 1. This cost is estimated at around 18%, and is to be paid by the employees(supposedly). We will know more in October when the state comes out with the employee rates for 2020.
If you are a current customer of mine, call me if you have questions. If you don’t work with us, we are always available to explain how this benefit works for you and your employees. Dave Koch CEO Two River Benefits cell- 848-218-1947.