CA Short Term Temporary Disability Insurance (DI)
Disability Insurance (DI) provides short-term wage replacement benefits to eligible California workers only monetary benefits. SDI does not provide job protection. Disability is an illness or an injury, either physical or mental occurring outside the workplace which prevents you from performing your regular and customary work. Disability also includes elective surgery, pregnancy, childbirth, or other related medical conditions. California’s SDI and PFL programs are fully funded by employee contributions. No employer contributions are required. For 2021, the maximum annual employee contribution for SDI and PFL combined is $1,539.58. This is based upon a 1.2% withholding rate on the employee’s first $128,298 in taxable wages. Employees can collect up to 52 weeks of full Disability Insurance (DI) benefits, or the amount of wages in your base period, whichever is less. A base period covers 12 months and is divided into four consecutive quarters. The base period includes wages subject to SDI tax that were paid about 5 to 18 months before your disability claim began. The base period does not include wages paid at the time your disability begins.
Two River Benefits offers a private plan alternative (VDI) to the California DI & PFL. Our private plan can save apx. $20,000 per million dollars of payroll. To find out more, contact a Two River Benefits disability specialist.