Disability Insurance California
How does Disability Insurance in California work?
Disability insurance California is one of the most popular forms of health insurance available in the state. It’s generally known as CASDI (California State Disability Insurance) or SDI (State Disability Insurance). It was launched back in 1946 and is state-audited and state-regulated. It’s designed for people who can’t work due to illness, a non-workplace injury, or because of a pregnancy-related condition. The disability insurance is designed to replace a part of your weekly wages.
According to the state’s Unemployment Insurance Code, a disability is any physical or mental injury or illness which stops you from performing your customary or regular work. There are three separate disability insurance California plans available to resident that are administered by the California Employment Development Department’s (EDD) Disability Insurance Branch. These are the State Plan, Voluntary Plan, and Elective Coverage. Most California employees are covered under the state plan.
The state-mandated plans are funded through employee payroll deductions and offer short-term benefits to those who are eligible. There are two programs offered, which are disability insurance and paid family leave. People can apply to the EDD to join the Voluntary Plan, which is a private policy for employee groups and employers, if the employer and the majority of workers agree to it. The Elective Coverage is designed for self-employed people and employers. This includes general partners, and those who work in family businesses who aren’t subject to the state Unemployment Insurance Code.
Employee contributions that go to the state fund are deductible as state taxes and the 2012 contribution rate is one per cent while the taxable salary limit is currently set at $95,585 per employee for each calendar year. This means the maximum amount that can be deducted from each worker is $955.85. You can deduct the SDI contributions off of Schedule A federal tax returns as they’re considered to be state income tax.
If you meet all of the eligibility requirements, you’ll receive 55 per cent of your average weekly salary up to the specific maximum weekly amount. You’re eligible to claim for the benefits after you’ve been disabled and haven’t been able to work for eight straight days. You can claim benefits for as many as 52 weeks if you’ve paid the SDI taxes as a worker. If you’re self-employed and have the voluntary coverage then you’re eligible to receive the benefits for a period up to 39 weeks.
The state’s paid family leave is known as PFL or FTDI (Family Temporary Disability Insurance). This program was introduced as a part of disability insurance California back in 2002. This type of insurance coverage is designed to offer disability benefits to those individuals who need to leave their jobs temporarily to care of a family member who’s seriously ill or to spend time with new children or a child.
There are several eligibility requirements for all types of disability insurance California as rules and regulations and procedures that need to be followed to make claims etc. It’s recommended that you contact the EDD to find out what the current specifics of these plans are