Integration of Wages with Benefits

Integration of wages with Disability Insurance (DI) and Paid Family Leave (PFL) benefits, also known as coordination or supplementation, can help an employee reach their normal weekly salary during their DI or PFL benefit period.

Employees can use any combination of their available leave credits together with their claim benefits. Leave credits can include:

  • Sick leave.
  • Vacation leave.
  • Other paid time off.
  • Short-term or long-term disability plans provided by their employer.

Employees cannot receive more than 100 percent of their normal weekly salary during their DI or PFL benefit period. It is both the employee’s and employer’s shared responsibility to review the benefit information to make sure wages are integrated correctly.

For example, your current gross (before taxes and deductions) weekly wage is $500. The weekly benefit amount from DI or PFL is $275. The $500 minus $275 equals a $225 per week wage loss. Your employer can integrate a maximum amount of $225 per week in gross wages to you, allowing you to receive 100 percent of your normal weekly gross pay.

Note: Leave credits can be used during the seven-day waiting period for DI claims. PFL does not have a benefit waiting period, so wage integration can start on the first day of the PFL claim unless the employer requires two weeks of vacation pay to be used first.

San Francisco workers: Your employer may be required to provide supplemental compensation to you if you are receiving PFL benefits for bonding with a new child through birth, adoption, or foster care placement. For more information, visit the City and County of San Francisco, Office of Labor Standards Enforcement Paid Parental Leave Ordinance (PPLO).

Check with your employer to confirm that they have an integration policy.

Your employer may need to contact us to verify how much you are being paid. To release this information without delays or a disqualification on your claim:

  • Answer Yes to the question, “May we disclose benefit payment information to your employer(s)?” using SDI Online or paper forms. If you do not answer the question or answer No, we cannot provide payment information to your employer.
  • Send us written authorization.

Note: Personal claim information (such as your diagnosis) is confidential and cannot be shared with your employer.

The EDD mails a Notice of Computation (DE 429DF) which informs the individual that the claim was received and provides their estimated benefit amount. Individuals will know their claim has been approved once they receive an Electronic Benefit Payment (EBP) Notification (DE 2500E). You should share this information with your employer to prevent any benefit overpayment.

How to Report Integrated Wages

Disability Claims

For Disability Insurance the first seven days of the DI claim is a non-payable waiting period. Leave credits can be used to integrate during the seven-day waiting period for DI claims.

If you’re using SDI Online:

  1. Select Yes to the question, “Has or will your employer continue to pay you during your disability leave?”
  2. Check the box for the type of pay you will receive.
  3. Use the field labeled Other and type one of the following options that apply to you on your form:
    • Less State Disability Insurance (LSDI)
    • Coordinated Benefits
    • Integrated Benefits
    • Regular Pay minus DI

If you’re using a paper Claim for Disability Insurance (DI) Benefits (DE 2501) form:

  1. Check the box for the type of pay you will receive (Question A26).
  2. Use the field labeled Other and write one of the following on your form:
    • Less State Disability
    • Insurance (LSDI)
    • Coordinated Benefits
    • Integrated Benefits
    • Regular Pay minus DI

You can review a list of common types of pay to report your wages correctly.

You can also attach a letter to the DE 2501 to report all wages.

Note: It may be necessary to send some documents via US mail even if you chose electronic communication.

Paid Family Leave Claims

PFL does not have a benefit waiting period, so wage integration can start on the first day of the PFL claim unless the employer requires two weeks of vacation pay to be used first.

New mothers after a pregnancy-related disability
If you’re using SDI Online:

  1. Under Section 5 – 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?”
  2. Select the type of pay from the dropdown menu.
  3. Provide the beginning and ending pay dates.

If you’re using a paper Claim for Paid Family Leave (PFL) Benefits – New Mother (DE 2501FP) form:

  1. Answer Yes for question 6, “Will your employer continue to pay you wages during your family leave?”

New father, adoptive or foster parent, or new mother who did not have a pregnancy-related disability claim
If you’re using SDI Online:

  1. Under Section 7 – Additional Questions, for the statement “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 dropdown menu to provide the answer.

If you’re using a paper Claim for Paid Family Leave (PFL) Benefits (DE 2501F) form:

  1. For question A22, check the box for the type of pay you will receive.
  2. Use the field labeled Other and write one of the following on your form:
    • Less Paid Family Leave (LPFL)
    • Coordinated Benefits
    • Integrated Benefits
    • Regular Pay minus PFL

You can review a list of common types of pay to report your wages correctly.

You can also attach a letter to the DE 2501FP or DE 2501F to report all wages including integrated and coordinated wages.

Note: It may be necessary to send some documents via US mail even if you chose electronic communication.

As an employer, it is your responsibility to create and maintain a policy for determining how much you pay your employees. We do not regulate this process. Employers do not have to be approved to integrate wages for their employees. However, if you are not on the Integration list, there may be delays while we contact you to verify information.

If your employee is eligible for DI or PFL, they will receive a Notice of Computation (DE 429DF) which informs the individual that the claim was received and provides their estimated benefit amount. Individuals will know their claim has been approved once they receive an Electronic Benefit Payment (EBP) Notification (DE 2500E). Your employee should share this information with you to prevent any benefit overpayment.

Approved Integration Employers

If you are an employer approved to integrate wages:

  • You can apply the process to any current and future employees.
  • Being approved reduces follow up contact because we do not investigate wage or integration information.

If you are not an approved integration employer, you have the option to be added to the State Disability Insurance Integration Lists (LSDI/LPFL).

To start or stop integrating wages with benefits, call 1-855-342-3645 or write to:

Employment Development Department
PO Box 826880 - DICO, MIC 29
Sacramento, CA 94280-0001

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

How to Report Integrated Wages

For Disability Insurance the first seven days of the DI claim is a non-payable waiting period. Leave credits can be used to integrate during the seven-day waiting period for DI claims.

Disability Claims

If you’re using SDI Online:

  1. In Section 4D - Wage Information, select Yes to the question asking if wages will be coordinated/integrated.

If you’re using a paper Notice to Employer of Disability Insurance Claim Filed (DE 2503) form, answer Yes to question 5 and skip question 7.

Paid Family Leave Claims

PFL does not have a benefit waiting period, so wage integration can start on the first day of the PFL claim unless you, the employer, requires two weeks of vacation pay to be used first.

Using the paper Notice of Paid Family Leave Claim Filed (DE 2503F) form, answer Yes to question 6 and report pay dates and all wages including integrated wages.

Last Revised: 08/01/2021

Register for Benefit Programs Online

Creating an account is an important step in this process. With Benefit Programs Online, you can submit the required Disability Insurance employee forms in SDI Online.

Additional Resources

Can’t find what you’re looking for? View these resources for more information.