Elective Coverage Premiums

Premiums:

For calendar year 2010 Disability Insurance Elective Coverage (DIEC) premiums are based on net profit reported in 2008 Internal Revenue Service (IRS) Form 1040, Schedule SE or Schedule C. Each quarter, one fourth of this amount is reported as “wage credits.” The DIEC premium rate for 2010 is 2.57 percent (0.0257) of the first $93,316 in net income. The premium includes contributions for the Disability Insurance and Paid Family Leave programs.

Determine Premiums by Net Profit:

If the net profit shown on line 3 of your 2008 IRS Form 1040, Schedule SE or line 31 on Schedule C is:

$4,600 or less--you will pay an annual premium of $118.22 during 2010. Your premium will be paid in four equal quarterly installments.

$4,601 to $93,316--multiply your net profit by 2.57 percent to determine your 2010 annual premium. Your premium will be paid in four equal quarterly installments.

$93,316 to $373,264--your annual premium for 2010 will be $2,398.22. Because premiums are based on the first $93,316 of reported net profits, your quarterly installments may be higher at the beginning of the year than at the end of the year.

$373,265 or more--your entire 2010 premium of $2,398.22 will be due at the end of the first quarter and becomes delinquent after April 30, 2010.

For information about the DIEC program, contact the DIEC unit at 1-916-654-6288 or EDD Taxpayer Assistance Center at 1-888-745-3886. Representatives are available Monday through Friday, from 8 a.m. until 5 p.m. Offices are closed weekends and Holidays.

Please send correspondence to:

Employment Development Department
DIEC Unit, MIC 5
P.O. Box 826880
Sacramento, CA 94280-0001

For questions about filing a claim, contact State Disability Insurance (Disability Insurance or Paid Family Leave) by telephone, in person, or correspondence.

You may also contact us online. To help us answer your question, please include as much information as possible on the electronic forms. All of your information (e.g., Social Security Number) will be maintained in a fully secure environment.