Temporary Disability Benefits LawMany employees in the United States suffer from temporary disability. To provide help to such employees and save them from falling into any debt due to their disability the states of New York and New Jersey have a law that provide benefits to such employees. The law is known as the temporary disability benefits law. The temporary disability benefits law administered by these states is in adjunct to the unemployment insurance law. The temporary disability benefits law is designed to cover the employers that have one or more employees at a minimum annual payroll of $1,000. In case of government entities the law is entirely optional. The law's design changes the contribution rate on an annual basis. The employees need to pay 0.5 per cent of the first $19,300 of their total annual earnings. The maximum weekly contribution is about $88. Also the employers have to pay a start-up rate which is equal to the employee's contribution. The rates of the employer's contribution vary from 0.1 per cent to 1.1 per cent, as they depend on the claims, the employee's experience and the condition of the fund. According to the IRS the contributions made by the employers to the private or state plan are entirely deductible by the employer. Also these contributions are treated as a taxable income to the employee. The contributions made by the employees to the state funds are to be deducted as state taxes. However their contributions to a private plan are considered to be nondeductible personal expenses. Only those employees are considered to be eligible under these laws who have average earnings of $138 in each of 20 weeks before the disability. In case of employees with wages, it has to be $8,000 in wages in the 52 weeks preceding the disability. The maximum benefits that an employee can receive are $364 a week. Also the minimum benefits to be received are $90 a week. The rate of benefits is based on the two-thirds of an employee's average weekly wage. The period for which the employee can receive the benefits lasts for 26 weeks. The period can also be in terms of the one-third of the base pay for the year preceding the employee's disability. The period of pay is calculated according to whichever period is less. The law also provides an extension of benefits. Under this option the coverage is extended for two weeks following termination of the employment. It can be taken only if the employee does not go back to his/her covered employment. Also according to the temporary disability benefits law the two periods of disability that are not separated for more than 14 days caused by a same or otherwise a related cause are considered as one period of disability. |