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Employment Development Department
Employment Development Department

FAQs – Employers Benefits

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Most Disability Insurance or Paid Family Leave benefits are issued within two weeks after a properly completed claim is received.

We calculate the weekly benefit amount based on the calendar quarter with the highest earnings in the claimants base period. The base period covers 12 months and is divided into four consecutive quarters of three months each. The wages the claimant was paid approximately 5 to 17 months before the claim begins are included in the base period (they must be subject to the SDI tax). The base period does not include wages paid at the time the claim begins. See weekly benefit amounts.

An employee may not receive Paid Family Leave insurance benefits if he or she is receiving or will receive State Disability Insurance, Unemployment Compensation Insurance, or Workers’ Compensation benefits for the same period. Other benefits, such as employer paid benefits for baby bonding, may also affect payment of Paid Family Leave benefits.

The SDI program treats sick leave wages as wages earned. SDI benefits will be reduced by the amount of sick leave wages received, and may render the employee ineligible for benefits depending on the amount of sick leave wages received and the employee’s weekly benefit amount.

If you integrate (coordinate) the sick leave (pay the employee sick leave wages in an amount which is the difference between the SDI benefit and the employee's full wage), the sick leave benefits received by the employee will not affect the SDI benefit.

Yes.

Disability Insurance (DI) benefits are not taxable except when considered to be a substitute for unemployment compensation when paid to an individual who is ineligible for unemployment insurance (UI) benefits solely because of the disability. Only in this instance, where DI benefits are received in lieu of UI benefits, will the EDD provide the claimant with a 1099G form showing amounts paid which are reportable (no more than the original UI maximum) and forward a copy of the 1099G to the Internal Revenue Service (IRS).

Paid Family Leave (PFL) benefits are taxable for federal purposes but not state tax purposes. The EDD will provide all claimants with a 1099G form and forward a copy of the 1099G to the federal IRS. The PFL benefits are not taxable or reportable to the California State Franchise Tax Board.