the basis of federal legislation, certain State employees, primarily
those working in State institutions, were initially covered by
unemployment insurance as early as 1972. In 1978, the plan was
extended to most State employees. Initially, the Division's responsibility
was limited to the collection of employee contributions and the
remittance of this money and employer contributions to the Department
of Labor. With the expansion of the program to most State employees,
the services of a contractor were obtained in order to monitor
and complete claims, as well as prepare quarterly reports of claims
activity. Quarterly reports are sent to the Division to verify
the value of claims paid by the Division of Unemployment and Disability
Insurance. The additional responsibility of oversight of contracting
services was transferred to the Division in June of 1979, when
a contract was awarded on the basis of competitive bids.
1980, in conformity with State law, Temporary Disability Insurance
coverage was mandated for State employees who are covered by Unemployment
Insurance. The Disability Insurance Service of the Department
of Labor is responsible for preparing reports of claims activities
and conducting educational programs similar to those that are
presently being performed by a contractor for Unemployment Insurance
Unemployment Insurance Report
following describe the benefit administration for purposes of
Notice of Employee
an employee's services are terminated, the contractor responsible
for claims control and review should be immediately contacted
and advised of the reason for the separation. Currently, separation
information is being provided to the contractor by phoning the
date to a voice response unit.
the statute, the State is liable for the employer's cost of unemployment
insurance and temporary disability insurance benefits. Covered
employees, including employees of the various State higher education
institutions, are required to pay one-half of one percent of taxable
wages in each calendar year for Temporary Disability Insurance.
Employees covered by the unemployment program pay at a rate of
0.425% of taxable wages each year, a portion of which is deposited
in the State's Health Care Subsidy Fund and the Workforce Development
Partnership Fund. The amount of taxable wages is determined annually
by the Department of Labor.
Division of Pensions and Benefits receives a weekly unemployment
contribution report from the State's Centralized Payroll. On a
quarterly basis, the State higher education institutions send
a contribution report
along with a check representing the total contributions deducted
from employers for the quarterly period. The institutions must
file their report and send the required remittance to the Division
by the 15th of the month following the end of each calendar quarter.
The report is prepared in duplicate: the original is sent to the
Division, and a duplicate is retained by the employer. The instructions
needed to complete the report are detailed on the back of the
Workforce Development and Health Care Contributions
deducted from an employee's wages are reported and paid to the
Division of Pensions and Benefits on a quarterly basis. The checks
covering the total amount of the contributions must be made payable
to the "Treasurer-State of New Jersey." The
quarterly reports are filed with the contributions due within
15 days after the end of each calendar quarter, and the employer's
identification number (EIN) must always be indicated on the report.
The report is prepared in duplicate: the original is sent to the
Division of Pensions and Benefits, and a duplicate copy is retained
by the employer. The instructions needed to complete the report
are detailed on the reverse side.
Performed by the Contractor
contractor provides direction and assistance for unemployment
purposes with respect to wage reporting, claims processing, training
programs for personnel-payroll staff, attendance at hearings,
and information reports.
contractor, based on payroll and separation information provided
by State biweekly and monthly reporting employers, reviews and
audits all claims notices and determinations, both monetary and
non-monetary, and consults with personnel officers as to the filing
of protests and appeals. Also, the contractor will protest all
cases in which the initial determination concerning an award is
incorrect or questionable, and file an appeal in a proper case.
If a hearing is held on a protested claim, a representative of
the contractor will attend the hearing to provide assistance to
the representative of the employing agency.
reports will be remitted to the Division showing statistical
information on the State's claim experience, and will include
information to identify the reasons for separations, number of
claims, liability, etc.
Disability Insurance Report
a covered employee becomes sick or disabled and is under the care
of a licensed physician, dentist, podiatrist, or chiropractor,
you must provide the employee with Form DS-1, Claim for Disability
Benefits. The form should be completed and mailed promptly.
Loss of benefits can result if it is filed more than 30 days after
the onset of the disability.
purposes of temporary disability insurance, benefits are reduced
by the amount paid concurrently under any governmental or private
retirement, pension, or permanent disability benefit or allowance
program to which the individual's most recent employer contributed
on the employee's behalf. However, social security retirement
benefits do not reduce benefits paid under the State disability
insurance program. Temporary disability benefits are subject to
automatic deductions for Social Security (FICA) tax purposes.
benefits are payable for the first seven days of each period of
disability. If the claimant is also eligible for benefits in the
three consecutive weeks immediately succeeding the first seven
days, then those first seven days will also be payable. The weekly
maximum benefit is payable for no more than 26 weeks with respect
to any one period of disability. However, employees will not be
able to collect disability benefits until they have exhausted
all their accumulated sick leave. Benefits will be determined
by the Disability Insurance Service Unit, Department of Labor.
purposes of temporary disability insurance payments to a retiree
from a State-administered retirement system, pension offset provisions
are applicable only if the pensioner is being paid by the most
Procedure and Reports
procedure for reporting and remittance of Unemployment, Workforce
Development and Health Care contributions is followed for temporary
disability insurance purposes. However, a separate Report
of Temporary Disability Insurance must be completed and
sent to the Division of Pensions and Benefits. The reports are
sent together with the checks covering the total amount of temporary
disability insurance contributions deducted from the employees'