California State Disability Insurance (SDI or CASDI) is a statutory (state-regulated and state-audited) state disability program of the State of California for short-term disability income replacement. The program has been in effect since 1996.
Costs
The costs of the program are covered by contributions to the State Fund in the form of SDI tax paid by employees, optionally by employers. Employee contributions to the state fund are deductible as state taxes.
The table below summarizes the contribution rates, taxable wage limits and maximum withholdings per employee since 1996:
Benefits
The plan provides up to one year of tax-free benefits equal to 55% of the recipient's average gross (pre-tax) income in a recent base period quarter. The minimum benefit is $50 a week and as of January 1, 2017, the upper limit is $1,173 per week. Excluding the current and immediately previous quarter, the base period is the four quarters immediately prior to that. The weekly benefit is 55% of the recipient's average weekly pay during the highest earning quarter in the base period. For example, assuming the recipient's highest quarterly earnings were $3,900 then dividing by 13 weeks, gives an average pay rate of pay of $300 per week. At 55% of this, the benefit amount would be $165 per week (or $330 per two-week benefit payment period).
SDI is deductible on federal returns (Schedule A) because it is considered a state income tax.
Family Temporary Disability Insurance
In 2002, California enacted the Paid Family Leave (PFL) insurance program, also known as the Family Temporary Disability Insurance (FTDI) program, which extends unemployment disability compensation to cover individuals who take time off work to care for a seriously ill family member or bond with a new child.
See also
- United States state disability programs
- Paid family leave
- Family and Medical Leave Act of 1993
References
External links
- Employment Development Department รข" administers the SDI program
- Calculating Benefit Amounts
- How to file a Claim for Disability Insurance