Self-Employed - Elective Coverage Premiums

Premiums

For calendar year 2019 Disability Insurance Elective Coverage (DIEC) premiums are based on net profit reported in 2017 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 2019 is 5.13 percent of the first $118,371 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 2017 IRS Form 1040, Schedule SE or line 31 on Schedule C is:

  • $4,600 or less – you will pay an annual premium of $235.98 during 2019. Your premium will be paid in four equal quarterly installments.
  • $4,601 to $118,371 – multiply your net profit by 5.13 percent to determine your 2019 annual premium. Your premium will be paid in four equal quarterly installments.
  • $118,372 to $473,483 – your annual premium for 2019 will be $6,072.43. Because premiums are based on the first $118,371 of reported net profits, your quarterly installments may be higher at the beginning of the year than at the end of the year.
  • $473,484 or more – your entire 2019 premium of $6,072.43 will be due at the end of the first quarter and becomes delinquent after May 1, 2019.

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.