California State Disability Insurance

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 1946.[1]

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.[2] The table below summarizes the contribution rates, taxable wage limits and maximum withholdings per employee since 1996:

Year Rate Eligible Wages Max Withholding
20211.20%128,2981,539.58 [3]
20201.00%122,9091,229.09 [4]
20191.00%118,3711,183.71 [5]
20181.00%114,9671,149.67
20170.90%110,902998.12
20160.90%106,742960.68
20150.90%104,378939.40
20141.00%101,6361,016.36
20131.00%100,8801,008.80
20121.00%95,585955.85
20111.20%93,3161,119.79
20101.10%93,3161,026.48
20091.10%90,669997.36
20080.80%86,698693.58
20070.60%83,389500.33
20060.80%79,418635.34
20051.08%79,418857.71
20041.18%68,829812.18
20030.90%56,916512.24
20020.90%46,327416.94
20010.70%46,327324.29
20000.65%46,327301.13
19990.50%31,767158.84
19980.50%31,767158.84
19970.50%31,767158.84
19960.50%31,767158.84

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).

Maximum weekly benefit [6]

Year Max Weekly
20181,216
20171,173
20161,126
20151,104
20141,075
20131,067
20121,011
2011987
2010987
2009959
2008917
2007882
2006840
2005840
2004728
2003603

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

References
  1. About California SDI page
  2. IRS Publication 17
  3. https://edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm
  4. https://www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm
  5. http://www.edd.ca.gov/Disability/SDI_Contribution_Rates.htm
  6. https://www.edd.ca.gov/about_edd/pdf/qsdi_Max_WBA.pdf
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