How NJ Payroll Taxes Fund Disability Benefits and Impact Workers
There are several reasons why the private sector equivalent might be higher: adverse
selection associated with voluntary offerings, lower persistency, and agent commission payments. Does this account for the entire difference? It's very hard to tell. But perhaps the NJ disability program runs at a deficit as does most other government programs meaning high income tax payers make up the difference.
How NJ Payroll Taxes Fund Disability Benefits and Impact Workers