California State Disability Insurance

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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.

Costs[edit]

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.[1]

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

Year Rate Eligible Wages Max Withholding
2014 1.00% 101,636 1,016.36
2013 1.00% 100,880 1,008.80
2012 1.00% 95,585 955.85
2011 1.20% 93,316 1,119.79
2010 1.10% 93,316 1,026.48
2009 1.10% 90,669 997.36
2008 0.80% 86,698 693.58
2007 0.60% 83,389 500.33
2006 0.80% 79,418 635.34
2005 1.08% 79,418 857.71
2004 1.18% 68,829 812.18
2003 0.90% 56,916 512.24
2002 0.90% 46,327 416.94
2001 0.70% 46,327 324.29
2000 0.65% 46,327 301.13
1999 0.50% 31,767 158.84
1998 0.50% 31,767 158.84
1997 0.50% 31,767 158.84
1996 0.50% 31,767 158.84

Benefits[edit]

The plan provides tax-free replacement of income of 55% of an employee's average weekly pay, up to a maximum weekly benefit, which was $959.00 ($50/week minimum) in 2009. For 2010 and 2011, the maximum weekly benefit increased to $987.00. In 2012 it increased to $1011.00 and in 2013 has reached $1067.00 per week.[2] Benefits become available on the eighth consecutive day of disability and continue for up to 52 weeks of disability if the beneficiary paid SDI taxes as an employee, 39 weeks if the beneficiary had voluntary self-employment coverage.

SDI is deductible on federal returns (Schedule A) because it is a considered a state income tax.

Family Temporary Disability Insurance[edit]

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[edit]

References[edit]

  1. ^ IRS Publication 17
  2. ^ California EDD form DE2588

External links[edit]