Elective Coverage Premiums
For calendar year 2017 Disability Insurance Elective Coverage (DIEC) premiums are based on net profit reported in 2015 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 2017 is 4.55 percent of the first $110,902 in net income. The premium includes contributions for the Disability Insurance (DI) and Paid Family Leave (PFL) benefits.
Determine Premiums by Net Profit
If the net profit shown on line 3 of your 2015 IRS Form 1040, Schedule SE or line 31 on Schedule C is:
- $4,600 or less – you will pay an annual premium of $209.30 during 2017. Your premium will be paid in four equal quarterly installments.
- $4,601 to $110,902 – multiply your net profit by 4.55 percent to determine your 2017 annual premium. Your premium will be paid in four equal quarterly installments.
- $110,902 to $443,607– your annual premium for 2017 will be $5,046.05. Because premiums are based on the first $110,902 of reported net profits, your quarterly installments may be higher at the beginning of the year than at the end of the year.
- $443,608 or more – your entire 2017 premium of $5,046.05 will be due at the end of the first quarter and becomes delinquent after May 1, 2017.
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 (TTY users dial the California Relay Service at 711). Representatives are available Monday through Friday, from 8 a.m. until 5 p.m. Offices are closed weekends and holidays.
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 (DI or PFL) by telephone, in person, or correspondence.