State Disability Insurance
Encyclopedia
California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

 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

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 contribution rate for 2011 is 1.2%. The taxable wage limit is $93,316 for each employee per calendar year, so the maximum to withhold for each employee is $1,119.79.

The contribution rate for 2010 was 1.1%. The taxable wage limit was $93,316 for each employee per calendar year, so the maximum to withhold for each employee was $1,026.48.

The contribution rate for 2009 was 1.1%. The taxable wage limit was $90,669 for each employee per calendar year, so the maximum to withhold for each employee was $997.36.

The contribution rate for 2008 was 0.8%. The taxable wage limit was $86,698 for each employee per calendar year, so the maximum to withhold for each employee was $693.58.

Benefits

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 increases to $987.00. 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 as tax on federal returns because it is a collected 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
    State disability
    In the United States, there are several states and one commonwealth that provide statutory disability programs, commonly known as "disability insurance". They are funded by mandatory contributions of employees . Employees' contributions are federal tax-deductible...

  • Paid family leave
    Paid family leave
    Paid family leave refers to leaves taken from work for the purpose of recovering from a serious illness, to care for a seriously ill family member or to bond with a newly born or newly adopted child, during which the leave-taker receives some level of financial support from the employer, an...

  • Family and Medical Leave Act of 1993
    Family and Medical Leave Act of 1993
    The Family and Medical Leave Act of 1993 is a United States federal law requiring covered employers to provide employees job-protected unpaid leave for qualified medical and family reasons. These reasons include personal or family illness, military service, family military leave, pregnancy,...


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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