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WINTER 2007

EMPLOYER UPDATE JON S. CORZINE
GOVERNOR
New Jersey Department of Labor and Workforce Development DAVID J. SOCOLOW
COMMISSIONER

In This Issue
New Jersey’s redesigned business Web site easier to use……….…………….….….….2
New year brings new contribution rate ….……………………………………..….….3
Evaluate your company’s injury and illness record……………………………………..4
Opportunities available to raise the skills of your workforce…………………..……….6
New Jersey’s Workers’ Compensation system explained………………………………7
Tax reporting requirements for Temporary Disability and Unemployment Insurance… 8

Employer Update – Winter 2007

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New Jersey’s redesigned business Web site easier to use
On November 7, 2007, the state’s Office of Economic Growth (OEG) launched an enhanced
business portal that offers you a single, streamlined point of entry to a variety of business
information. The redesigned Web site, www.NewJerseyBusiness.gov, features improved
navigation with easy-to-access information on: workforce training, licensing, permitting,
incentive grants and financing, as well as details on how to start, operate or expand an existing
business.

The site, geared toward small- and midsize businesses, is part of Gov. Corzine’s economic
growth strategy to create a stronger environment for businesses to grow, prosper, and create
jobs.

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New year brings new contribution rates
On January 1, 2008, the new maximum benefit rates and the taxable wage base for New
Jersey’s Unemployment Insurance, Temporary Disability Insurance, and Workers’
Compensation programs go into effect. The maximum amount a worker can collect
under these programs and the taxable wage base changes annually to keep pace with
wage growth. New Jersey workers eligible to receive unemployment or temporary
disability benefits under regular criteria must have worked at least 20 base weeks
during the preceding year in employment covered by unemployment insurance. The
amount of earnings establishing a base week remains the same at $143. If a claimant
has not worked 20 base weeks, the alternative test amount of earnings required also
remains the same at $7,200. Wages subject to taxation under the unemployment and
temporary disability insurance programs will increase from $26,600 to $27,700.

Maximum Benefit Rates

Program 2007 2008
Unemployment Insurance $536 $560
Temporary Disability Insurance $502 $524
Workers’ Compensation $711 $742

The contribution rate for state and local government entities that choose to make contributions,
rather than reimbursing the trust fund for unemployment insurance benefits paid to their former
employees, will increase from 0.4 percent of taxable wages during calendar year 2007 to 0.5
percent during calendar year 2008.

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Evaluate your company’s injury and illness record
Data recently released from the 2006 Survey of
Occupational Injuries and Illnesses may be useful

Why is workplace safety and health important?
Workplace injuries and illnesses are costly for workers and for you. Workers who are hurt on
the job suffer pain and lost wages, while you and your insurance company pay medical costs
and wage benefits to the employee. You also experience the indirect costs associated with lost
productivity. Preventing workplace injuries saves lives and money and improves quality of life.

My company had two work-related injuries last year – is that a lot?
The answer to that question depends on several factors. A company with 1,000 employees and
only two work-related injuries in a year has a better injury and illness record than a company
with two injuries and 10 employees. Incidence rates, the formula used to compare workplace
injuries and illnesses for a company within its industry, between industries, among states and
the nation, considers the number of cases that occur per 100 full-time workers.

How can I calculate my company’s injury and illness incidence rate?
The law requires most companies 1 to post a summary of workplace injuries and illnesses at the
end of each calendar year. This summary (OSHA 300A form) includes all of the facts that you
need to calculate your workplace’s injury and illness incidence rate.

To calculate the incidence rate for all recordable cases, take the number of cases (OSHA 300A
summary – columns G + H + I + J), multiply by 200,000, and then divide by the total hours
worked from the OSHA 300A form. For more information on incidence rates calculations and
a sample worksheet, click here.

Now I know my company’s incidence rate. What does it mean?
You can compare your company’s incidence rate to the average rate for your industry. Find
your industry description in the table of 2006 incidence rates by industry. Is your company’s
rate higher or lower than the industry? If your rate is lower, your company’s safety experience
is better than the industry average (but there may still be areas for improvement). If your
company’s rate is higher than the industry average, the NJ Department of Labor and Workforce
Development offers a free service that can help you identify workplace hazards and improve
your safety program. The OSHA On-Site Consultation Program is risk-free —no citations or
penalties are issued during the consultations. Click here for more information about how this
free program might benefit your company.

How can I get more detailed statistics on workplace injuries & illnesses?

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For a list of OSHA’s Low-Hazard industry exemptions, click here.
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The annual Survey of Occupational Injuries and Illnesses is designed to collect information on
non-fatal work-related injuries and illnesses. The data are tabulated by industry, occupation of
the injured or ill worker, case characteristics, and worker demographics. Data are available for
private industry and for state and local government. Combinations and cross-tabulations of
these data elements can pinpoint specific kinds of cases that occur frequently, and the median
number of work days lost can be used to identify the kinds of injuries or illnesses that are most
severe.

Current and historical results from the Survey of Occupational Injuries and Illnesses, and
related safety and health links, are available online or by contacting the Worker Safety
Statistics staff at (609) 633-0755.

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Opportunities available to raise the skills of your workforce
Apply for literacy and competitive grants to train your
workers

As a business owner, you know firsthand the struggle of acquiring financial resources for the
training your workers need to help your business become more productive. Gov. Jon S.
Corzine’s economic growth strategy includes offering businesses opportunities to compete for
grants in the following areas: literacy skills training, high growth targeted areas, and
customized training. These grants may allow you to upgrade your workers’ skills and give your
business an advantage in the global marketplace.

The Department of Labor and Workforce Development awards literacy skills grants to help
you improve the basic skills of your workers. If you are in a high growth targeted industry you
can apply for workforce investment grants to develop industry-specific training for your
workers. Customized training grants upgrade the skills of your workers to make them more
marketable and to make your business more competitive in the global economy.

To find out if your business is eligible to apply for one of these grants, go to www.nj.gov/labor,
find “Spotlight,” on the left side, and click on any of the posted grant opportunities.

Act today!

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New Jersey’s Workers’ Compensation system explained

To help you better understand the Workers’ Compensation in New Jersey, the New Jersey
Policy Research Organization (NJPRO) prepared an overview of the program. NJPRO, New
Jersey's leading policy organization, conducts research on issues of importance to New Jersey
employers.

Go to http://www.njprofoundation.org/pdf/ffd3a.pdf

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Tax reporting requirements for Temporary Disability and
Unemployment Insurance
An Internal Revenue Service ruling states that New Jersey Temporary Disability benefits must
be treated as third-party sick pay. This designation requires Social Security (FICA)
withholdings and matching employer FICA contributions on the portion of benefits financed
by the employer’s experience rating. These taxable benefits must also be reported as wages for
federal income tax purposes. The chargeable employer is responsible for issuing W-2 forms to
employees who receive third-party sick pay.

As required by federal regulation, the Division of Temporary Disability Insurance mails benefit
payment information to chargeable employers when a benefit check is issued. Additionally, a
year-end summary of all payment activity is mailed to employers by January 15. The year-end
statement provides all the required information for inclusion on a W-2 form.

Disability During Unemployment benefits and Unemployment Insurance benefits are also
taxable for federal income tax purposes. Individuals who collect these benefits will receive a
1099 form directly from the Department of Labor and Workforce Development listing the
taxable income and any withholding.

Temporary Disability benefits and Unemployment Insurance benefits are not subject to the
New Jersey state income tax.

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