New Jersey Disability Insurance Tax Reporting Requirements for Private Plans
If you offer a private disability plan in New Jersey, read this article to ensure your SDI tax will be displayed accurately on your 2020 Form W-2s.
OVERVIEW
The State of New Jersey, Department of the Treasury, Division of Taxation has released a reminder on reporting requirements for Form W-2 applicable to companies that offer a private disability insurance plan. If you offer a private plan, you must notify Namely to ensure pertinent W-2 information for New Jersey Disability Insurance (NJ SDI) is properly displayed on your 2020 Form W-2s.
This requirement allows the state of New Jersey, and other preparers of Form W-2 to report 2020 withholdings of employee contributions for NJ SDI accurately. If you offer a private plan, the state requires both the state and private disability insurance amounts withheld, and the private plan number to be displayed on your Form W-2s.
If you have a private disability plan or have questions about this requirement, please submit a case in the Help Community with the product name Payroll and the subject line NJ Disability Insurance.
FREQUENTLY ASKED QUESTIONS
I do not have a private plan and our insurance is paid through the State of New Jersey. Is my W-2 SDI information currently accurate?
Yes. If you do not have a private plan, Namely has correctly configured this information on your W-2 and no action is required.
Which taxes are impacted by private plans in the state of New Jersey?
The only tax that is impacted by New Jersey private plans is NJ-SDI-EE (EE).
What are private plans?
As a subject employer, you may establish a private plan for the payment of disability benefits in place of the benefits payable under the State Plan. Such private plans may be contracts of insurance issued by authorized carriers, by employers as self-insurers, or by agreements between unions and employers.
Where can I go to learn about private plans and get my organization’s number?
The NJ Department of Labor and Workforce Development website has detailed information on private plans. You may also contact the department by email or telephone:
Telephone: (609) 292-2720
FAX: (609) 292-2537
E-mail: Raymond.Russell@dol.nj.gov