Tax Information - State Plan
State Plan temporary disability benefits are considered third party sick pay for both social security (F.I.C.A.) and federal income tax purposes, and must be reported on your federal income tax return. The portion of State Plan benefits paid to you which is attributable to your last employer's contribution is taxable income. Those benefits will be included on your W-2 annual earnings statement issued by your employer. Contact your employer if this amount is missing on your W-2 form. The Division of Temporary Disability Insurance will not send you a W-2 form.
Temporary Disability benefits are not subject to the New Jersey State Income Tax.