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Employment Development Department
Employment Development Department

FAQs – Integration/Coordination of State Disability Insurance (SDI) Benefits

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Employees/Claimants

Integration or coordination of DI or PFL benefits is a process in which you are paid the full DI or PFL weekly benefit amount and also being paid wages from your employer or are using your available leave to cover the difference. With this process you could potentially receive up to 100 precent of your normal gross weekly wages for the benefit period.

Example: Your current gross weekly wage is $500. The weekly benefit amount from PFL is $275. The $500 minus $275 equals a $225 per week wage loss. Your employer can integrate/coordinate a maximum amount of $225 per week in gross wages to you, allowing you to receive the equivalent of of 100 percent of your normal weekly gross pay.

Note:

  • It is the responsibility of both you and your employer to ensure that you are not receiving more than 100 percent of your normal gross wages when receiving integrated/coordinated wages in conjunction with the DI or PFL weekly benefit amount balance.

This process may allow you to receive up to 100 percent of your normal gross weekly wages during a period of disability or family care leave while using a reduced amount of your leave balance or receiving wages from your employer.

When the integration/coordination process is used, and the EDD has confirmed use of this process by your employer, the EDD will pay you the full DI or PFL benefits. This reduces follow-up contacts to your employer for further wage information.

The most common types of payments that are considered regular wages are sick leave, bereavement pay, back pay, and earnings (full or partial return to work). For more information visit: Reporting Your Wages While on Disability and Reporting Your Wages - PFL.

For DI benefits:

If you are filing using SDI Online, select “Yes” to the question “Has or will your employer continue to pay you during your disability leave?” and indicate the type of pay by checking the appropriate box.

If you are filing a paper claim form, you should respond to question A26 on the Claim for Disability Insurance (DI) Benefits (DE 2501) by writing in the type of pay being reported from the list below in the field labeled “Other”.

For PFL benefits:

If you are a new mother using SDI Online to file a bonding claim after a pregnancy-related disability, under Section 6 – Employer Information select “Yes” to the question “Will you continue to receive wages from your employer(s) during the period you are claiming Paid Family Leave benefits?” Select the type of pay from the drop down menu and provide the beginning and ending pay dates.

If you are a new mother filing a paper claim form after a pregnancy-related disability, you should respond “Yes” to question 6 ‘Will your employer continue to pay you wages during your family leave?” on the Claim for Paid Family Leave (PFL) Benefits – New Mother (DE 2501FP).

If you are a new mother who did not have a pregnancy-related disability, new father, or adoptive or foster parent filing using SDI Online, under Section 7 – Additional Questions “If you will receive any type of pay from your employer(s) during your family leave, indicate type of pay” use the check boxes and drop down menu to provide the answer.

If you are new mother who did not have a pregnancy-related disability, new father, or adoptive or foster parent filing a paper claim form, you should respond to question A21 on the Claim for Paid Family Leave Benefits (DE 2501F) by writing in the type of pay being reported from the list below in the field labeled “Other”:
  • Less State Disability Insurance Benefits (LSDI), for the DE 2501
  • Less Paid Family Leave Benefits (LPFL), for the DE 2501F
  • Coordinated Benefits (for Both Forms)
  • Integrated Benefits (for Both Forms)
  • Regular Pay minus DI or PFL (for Both Forms)

Note: Another option is to attach a letter to your DE 2501 or DE 2501F to report all wages including integrated/coordinated wages.

The EDD may disclose this information to the employer if you provided written authorization on the initial DI or PFL claim forms or have submitted a separate written authorization stating the EDD may disclose benefit payment information to your employer pursuant to Section 1094 of the California Unemployment Insurance Code. You may authorize the EDD to release this information to your employer(s) by marking “Yes” to the question “May we disclose benefit payment information to your employer(s)?” on DI and PFL claims filed using SDI Online or paper claim forms.

Employers

Integration or coordination of DI or PFL benefits is a process in which the full DI or PFL weekly benefit amount is paid to the employee and the employee is also paid wages from you or using the employee’s available leave to cover the difference. With this process an employee could potentially receive up to 100 percent of their normal gross weekly wages for the benefit period.

Example: An employee’s current gross weekly wage is $500. The weekly benefit amount from PFL is $275. The $500 minus $275 equals a $225 per week wage loss. You can integrate/coordinate a maximum amount of $225 per week in gross wages to the employee, allowing the employee to receive the equivalent of 100 percent of their normal weekly gross pay.

Note:

  • It is the responsibility of both you and your employee to ensure that they are not receiving more than 100 percent of their normal gross wages when receiving integrated/coordinated wages in conjunction with the DI or PFL weekly benefit amount.

California Unemployment Insurance Code Section 2656, provides that wages received during a period of disability or family care leave, plus DI or PFL benefits, cannot exceed the employee’s normal gross weekly wage (excluding overtime pay) immediately prior to the start of the disability or period of family care leave.

SDI is a partial wage-replacement program, meaning that if an employee takes time off work due to a disability or the need to care for a seriously ill family member or bond with a new child, the employee must have a wage loss to qualify for SDI benefits.

The most common types of payments that are considered wages are sick leave, bereavement pay, back pay, and earnings (full or partial return to work). For more information visit: Reporting Your Wages While on Disability and Reporting Your Wages - PFL.

This process may allow an employee to receive up to 100 percent of their normal gross weekly wages during a period of disability or family leave while using a reduced amount of their leave balances or receiving wages from you.

When the integration/coordination process is used, and the EDD has confirmed use of this process by you, EDD will pay the employee the full DI or PFL benefits. This reduces follow up contacts to you for further wage information.

Currently, the claimant receives a Notice of Computation (DE429D) from DI or PFL providing the claim effective date, the weekly benefit amount, and the maximum benefit amount of the claim. In addition, with each DI or PFL benefit payment issued, the claimant receives a payment notification with the amount and period covered by each benefit payment. The claimant may provide this information to you to ensure the appropriate amount is deducted from the regular wages and to prevent any benefit overpayment. DI or PFL benefits received in addition to any wages paid by you must not exceed 100 percent of their normal wages.

You need DI or PFL benefit information to ensure the right amount of wages are paid to your employee during a period of disability or family leave.

Example: An employee’s current gross weekly wage is $500. The weekly benefit amount from PFL is $275. The $500 minus $275 equals a $225 per week wage loss. Consequently, you can coordinate/integrate a maximum amount of $225 per week in gross wages to the employee, allowing the employee to receive 100 percent of their normal weekly gross pay.

Notes:

  • It is the responsibility of both you and your employee to ensure that the employee is not receiving more than 100 percent of their normal gross wages when receiving coordinated/integrated wages in conjunction with the DI or PFL weekly benefit amount.
  • The first seven days of the DI or PFL claim is a non-payable waiting period, therefore wages paid by you are not in conflict (i.e., sick leave, holiday pay, etc.) Integration/coordination of benefits begins with the first payable day of DI or PFL benefits.

You can contact the EDD using the toll-free number for employers at 1-855-342-3645.

You also have the option to write to the EDD at the Disability Insurance/Paid Family Leave mailing address noted at Contact EDD. Select the By Mail option to obtain the address.

NOTE: If you have been approved to integrate/coordinate wages, you may apply the process to any current and future employees.

For assistance with payroll tax questions, call 1-888-745-3886.

For DI benefits, if you are using SDI Online, in Section 4D - Wage Information select “Yes” to the question asking if wages will be coordinated/integrated, which will prompt you to answer additional questions regarding integration details.

If you use a paper form, Notice to Employer of Disability Insurance Claim Filed (DE 2503) you should answer questions five and seven. Question five would be marked as “Yes” and question seven would require you to indicate the type of pay, period, and amount.

For PFL benefits, respond “Yes” to question six on the paper form Notice Of Paid Family Leave Claim Filed (DE 2503F) (Sample DE 2503F, Question 6) and report pay dates and all wages including integrated/coordinated wages.

The EDD may disclose this information to you if your employee (claimant) has provided their written authorization on the initial DI or PFL claim forms or has submitted a separate written authorization stating the EDD may disclose benefit payment information to their employer according to California Unemployment Insurance Code Section 1094. Your employee may authorize the EDD to release this information to you by marking “Yes” to the question “May we disclose benefit payment information to your employer(s)?” on their DI and PFL claims filed using SDI Online or paper claim forms.