Frequently Asked Questions

Listed below are some of the most frequently asked questions (FAQ) that we have received about EDD's programs and services. If you have a more specific question that you would like an answer to, contact us. Our FAQs are organized into the following categories:

Disability Insurance

1. Q. I have been working on the same job for the past two years and last week, while installing fans in my house, I fell off the ladder and broke my arms. The doctor tells me I will be out of work for at least six months. Is there a program that will provide me financial help while I am out of work?
   
   A. Yes, the State Disability Insurance (SDI) program is a worker funded program that provides benefits to an insured and eligible employee who suffers a wage loss and cannot work because of illness or injury not related to the job, including illness or injury resulting from pregnancy or childbirth.
   
   
2. Q. What can I do as a business owner or a self-employed individual to protect myself against loss of income if I become ill or disabled?
   
   A. The Disability Insurance Elective Coverage program, administered by the Employment Development Department, offers business owners and self-employed individuals the opportunity to protect themselves against loss of income due to injury, pregnancy or illness, whether or not it is work related.
   
   Some requirements:
   • You must own your own business or be self-employed.
   • You must be performing your normal duties on a full-time basis at the time your application is submitted.
   • You must derive the major portion of your income from your trade, business, or occupation.
   • Your business cannot be seasonal.
   • You must stay in the program for two complete calendar years unless you discontinue your business or move out of California.
   • Benefit eligibility:
     • Generally, you must have this insurance coverage for at least six months before you are eligible to file a claim.
     • Maximum benefit is $917.00 per week for up to 39 weeks.

More FAQs on Disability Insurance

Disability Insurance for State Employees

The State Disability Insurance (SDI) program was negotiated for employees in Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21.

1. Q. What is SDI?
   
   A. SDI pays part of an employee's wages if they have to stop working because of a non-work-related illness or injury. SDI also covers an employee if they take time off due to pregnancy or childbirth, or to bond with a minor child (i.e., under age 18) within one year of its birth, adoption, or foster care placement. SDI also covers time off to care for a seriously ill child, spouse, parent, or domestic partner. For specific benefit eligibility and payment amount information please refer to http://www.edd.ca.gov/direp/diind.htm.



2. Q. Can an employee choose to participate in either SDI or NDI/ENDI?
   
   A. No. The existing agreement provides for continuing the current NDI program (both the regular and enhanced benefit levels) until the SDI deductions start, and for six months following the initial SDI deduction. After that, the State will discontinue coverage under the NDI program if the employee is in a bargaining unit covered by SDI.



3. Q. Will the State continue to contribute to the employee's health, dental, and vision benefits if the employee is unable to work and receive SDI benefits?
   
   A. If an employee is unable to work (for reasons described in question 1) and is receiving SDI benefits; the State will pay the full premiums for an employee and any applicable dependent coverage for health, dental, and vision benefits during that time. The State will recover the employee’s portion of the premiums paid through an accounts receivable.



4. Q. Who administers the SDI program?
   
   A. The Employment Development Department (EDD) administers the SDI program; the SCO will calculate and withhold the deductions; and the Department of Personnel Administration (DPA) is responsible for the contract administration.



5. Q. Can an employee use leave credits while receiving SDI benefits?
   
   A. The agreement between the State and SEIU allows for the use of forty hours accrued leave credits per month while receiving SDI benefits. Also, an employee may use accrued vacation, annual leave, CTO, holiday credit, personal leave (PLP), or sick leave balances to cover the benefit waiting-period, per the provisions of the Memorandum of Understanding (MOU).



6. Q. Is an employee covered for Paid Family Leave (PFL) benefits under SDI?
   
   A. Yes. PFL, known as Family Temporary Disability Insurance (FTDI), provides benefits to individuals who need to be off work to care for a seriously ill family member, or for the birth, adoption, or foster care placement of a child. FTDI is a component of SDI. This means an employee covered by SDI, is also covered for this PFL benefit.



7. Q. Where can an employee find additional information about SDI, such as eligibility, benefits amounts, claim filing, etc?
   
   A. Specific information about the SDI program is available at http://www.edd.ca.gov/direp/diind.htm



8. Q. Employers are mandated by law to provide health benefits for employees while they are on a Family and Medical Leave Act (FMLA) leave. Will the State bill the employees for the employee-paid premium when they return to work from their FMLA leave?
   
   A. Yes. The employer will pay the employer's portion of the health benefits premium for up to 26 weeks. The State Controller's Office (SCO) will set up accounts receivable for the employee's portion of the health benefits premium to be paid when the employee returns to work.



9. Q. How will this work if the employee is out on a FMLA leave that runs concurrently with SDI?
   
   A. As stated above, the employer will pay the employer's portion of the health benefits premium for up to 26 weeks and the SCO will set up an accounts receivable for the employee's portion of the health benefits premium to be paid when the employee returns to work. If the employee has not returned to work after the 26 weeks, in order to continue the health benefits, the employee will be required to direct pay the provider for both the employee and employer share of the health benefits premiums.



10. Q. Will managers and supervisors receive SDI benefits?
    
    A. No, managerial and supervisory employees will continue to receive the current NDI program (both the regular and enhanced benefit levels).
    
    Please note that these questions and answers are intended to be general in nature, and may not address each individual situation. Specific situations will need to be evaluated on a case-by-case basis and in accordance with the applicable Memorandum of Understanding.



11. Q. Is SDI taxable? Disability Insurance (DI) vs. Paid Family Leave (PFL)?
    
    A. Disability Insurance (DI) benefits are not taxable except when considered to be a substitute for unemployment compensation when paid to an individual who is ineligible for unemployment insurance (UI) benefits solely because of the disability. Only in this instance, where DI benefits are received in lieu of UI benefits, will the EDD provide the claimant with a 1099G form showing amounts paid which are reportable (no more than the original UI maximum) and forward a copy of the 1099G to the Internal Revenue Service (IRS).
    
    Paid Family Leave (PFL) benefits are taxable for federal purposes but not state tax purposes. The EDD will provide all claimants with a 1099G form and forward a copy of the 1099G to the federal IRS. The PFL benefits are not taxable/reportable to the California State Franchise Tax Board.



12. Q. Are SDI deductions pre-taxed (deducted from the paycheck prior to paying federal, state and social security taxes)?
    
    A. No, SDI deductions are not pre-taxed.



13. Q. If the employee's spouse has health benefit coverage and the employee is receiving the cash option under FlexElect, will the employee be allowed to reenroll in the cash option after returning from leave?
    
    A. Yes, the employee's FlexElect Cash Option will resume automatically once the employee returns from leave.



14. Q. Can an employee work and receive SDI?
    
    A. Yes, an employee working reduced hours or at modified duty due to a disability and who suffers a wage loss may be eligible for benefits.



15. Q. How will Annual Leave credits be accrued for employees on SDI?
    
    A. An employee who is receiving SDI benefits will not accrue Annual Leave credits unless he or she works.



16. Q. Will an SDI deduction be taken from a lump-sum payment that is being transferred to an employee's 401K plan?
    
    A. No. Lump sum payments for pay (e.g. vacation, annual leave, CTO) which was earned but not paid for services performed prior to termination of employment, shall not be construed to be wages or compensation for personal services. Therefore, there should be no SDI deduction withheld from lump sum payments. This includes lump sum payments for vacation cash out or lump sum payments for 401K plans.



17. Q. What happens to a represented employee who has been paying into SDI for quite some time and then they promote/move to a non-SEIU bargaining unit? What happens to their SDI deductions? Are the funds returned to the employee? Is the employee eligible for both NDI and SDI?
    
    A. The SDI deductions stop. The funds are not returned to the employee. The employee could potentially be eligible for both NDI and SDI as long as the employee has wages in their base period.



18. Q. Employees may buy back NDI time for retirement purposes. Will employees be able to buy back SDI time?
    
    A. SDI does not qualify for purchase as retirement service credit.



19. Q. Are employees in the affected bargaining units who live and work in other states, but are employed by the State of California, covered by State Disability Insurance?
    
    A. Yes. These employees can file claims and receive benefits, if otherwise eligible, despite residing out of state.

More FAQs on Disability Insurance

Employment Tax

1. Q. Does EDD have seminars to help me learn more about California's payroll tax laws?
   
   A. Yes, the EDD offers free Payroll Tax Seminars to help you better understand the payroll tax laws.
   
   At our seminars, you will learn how to:
   
   
   • Prepare payroll tax returns.
   • Avoid unnecessary tax liabilities.
   • Distinguish between independent contractors and employees.
   
   
   You will also learn about:
   
   
   • New laws and emerging issues.
   • Services provided by EDD.
   • Customized topics to meet specific needs.
   
   
   If you would like to attend a seminar, please go to our seminars Web page. Select a seminar, then e-mail or call us for reservations. If you have any questions, please call our toll-free number 1-888-745-3886 or visit your local Employment Tax Office.
   
   
2. Q. Where can I find a brief overview of my rights as an employer under the employment tax laws?
   
   A. The Employment Development Department (EDD) is committed to applying employment tax laws in an equitable and impartial manner. The EDD's Tax Branch has developed an Employers' Bill of Rights brochure to inform you of your rights during the employment taxation process. The brochure, DE 195, is available from your local Employment Tax Office. It can be ordered using the Internet order form, or if you prefer, you may download, view, and print the brochure directly from this Web site.
   
   

More FAQs on Employment Tax

Finding a Job

1. Q. I have been out of work and have been looking for a job, but have not been able to find one. Does the Employment Development Department have a program or system that will help me find work?
   
   A. Yes, the EDD Job Service provides access to employer job listings and to other employment-related services provided by EDD and other local agencies. Job seekers can use the Internet-based CalJOBS^SM to search a database of employer job listings, and can enter their own applications for employers to view. EDD's job listings are also available in the national America's Job Bank system, along with job openings from all other states.
   
   
2. Q. How can I get information and an application for jobs with the State of California?
   
   A. The California State Personnel Board provides information about exams and civil service job openings with the State of California.
   
   
3. Q. How can I job hunt using the Internet?
   
   A. The Internet is an excellent resource for jobs and employment information. EDD's Job Service maintains CalJOBS^SM, which has thousands of jobs listed by California employers. CalJOBS^SM also enables job seekers to enter their resumes for review by employers who are looking for qualified workers. There is also a national Internet system, America's Job Bank, that has employer job listings from all the states, including California. Many employers also have World Wide Web sites that include employment information. Use your favorite web searcher. Often you can locate an employer on the WWW by entering the employer name between "http://www." and ".com/". For example, to locate Megamedia Incorporated, try entering "http://www.megamedia.com/".

Miscellaneous

1. Q. Who do I contact if I have questions about my wages, hours, or working conditions?
   
   A. The California Department of Industrial Relations (DIR) is responsible for all labor law issues, including the following:
   
   Labor Law
   - Wages, hours of work, and conditions of employment
   Workers' Compensation
   - Claims settlement, benefits and rehabilitation for job-related injuries and illnesses
   Occupational Safety & Health
   - Safe and healthful working conditions on the job
   Apprenticeship
   - Worksite job training to help meet skill needs of industry
   Mediation & Conciliation
   - Harmony in labor/management relations
   Statistics & Research
   - Prevailing wage determinations
   
   
2. Q. Who do I contact about discrimination in the workplace?
   
   A. For assistance with discrimination complaints, contact the California Department of Fair Employment and Housing.

Online Services (Employer Online Tax Filing, Registration and Payment)

1. Q. What does EDD Online Services offer?
   
   A. You can complete and submit your Quarterly Wage and Withholding Reports (DE 6), edit iFile "draft" reports, and view reports filed using iFile. You can also sign up for reminder and confirmation e-mails by accessing and updating your "iFile E-mail Options."
   
   You can complete and submit your Report of Independent Contractors (DE 542) online, using iICR. For general information about independent contractor reporting, see Independent Contractor Reporting.
   
   You can complete and submit your Report of New Employee(s) (DE 34) online or view information about the Internet New Employee Registry reporting system using iNER.
   
   You can register online for a new California employer account number and receive tax rate information using EZREG. Registered employers can also use EZREG to change their address or inactivate their account. Visit our Web site at https://eddservices.edd.ca.gov/index.html to utilize these services.
   
   You can also pay your taxes by electronic funds transfer or by credit card.
   
   
2. Q. What are the browser requirements for accessing data on the EDD Online Services Web site?
   
   A. You must be using a browser that supports 128-bit encryption. If your browser states that you cannot login, you may need to update your browser.
   
   We test for and support browsers Internet Explorer 6.0 and Netscape 7.2. If you do not have these versions, they can be downloaded from the following Web site links:
   
   
   • Internet Explorer - http://www.microsoft.com/windows/ie/default.asp
   • Netscape - http://channels.netscape.com/ns/browsers/default.jsp
   
   
   
3. Q. Are EDD Online Services programs secure?
   
   A. EDD has instituted a network of distributed security to ensure protection of information throughout EDD Online Services programs. Any program that may include the exchange of confidential information requires that a user login to a secure site. The self-selected UserID and password and any information you send to EDD Online Services is encrypted. See below for additional information on EDD Systems and Internet Security:

More FAQs on Employment Tax

Paid Family Leave

1. Q. What is Paid Family Leave?
   
   A. Paid Family Leave is unemployment compensation disability insurance paid to workers who suffer a wage loss when they take time off work to care for a seriously ill family member or bond with a new minor child.
   
   
2. Q. How long may a worker receive Paid Family Leave insurance benefits?
   
   A. Workers may receive up to six (6) weeks of benefits that may be paid over a 12-month period.
   
   
3. Q. What is the relationship of Paid Family Leave Insurance to State Disability Insurance?
   
   A. Paid Family Leave Insurance is a component of the State Disability Insurance (SDI) program. The Disability Insurance benefit portion compensates workers who suffer a wage loss when they can't work because of their own illness or injury. The Paid Family Leave benefit compensates workers who suffer a wage loss due to the need to provide care for a seriously ill family member or to bond with a new minor child.
   
   
4. Q. Are payroll deductions mandatory?
   
   A. Yes, beginning January 1, 2004, employers are required to deduct the Paid Family Leave contributions from the wages of employees' who contribute to the SDI program.
   
   
5. Q. Who pays?
   
   A. The Paid Family Leave insurance program is fully funded by employees' who contribute to the SDI program.

More FAQs on Paid Family Leave for Employees and Employers.

Privacy

1. Q. How does EDD protect my personal information?
   
   A. The EDD values and protects your privacy and places strict controls on the gathering and use of personally identifiable data. Your personal information is not disclosed, made available, or otherwise used for purposes other than those specified at the time of collection, except with your consent or as authorized by law or regulation.
   
   
2. Q. Where can I view EDD's Privacy Policy and Conditions of Use?
   
   A. View EDD's Privacy Policy and Conditions of Use.
   
   
3. Q. How do I contact the EDD Privacy Officer?
   
   A. You may contact EDD's Privacy Officer via AskEDD.
   
   
4. Q. Does EDD have a Privacy Program?
   
   A. EDD's Privacy Program documentation can be provided upon request by contacting the EDD's Information Security Office (ISO) via AskEDD.
   
   
5. Q. What do I do if I believe my personal information related to my EDD claim or account was accessed or modified?
   
   A. If your believe your personal information related to your EDD claim or account was accessed or modified, immediately contact the EDD's Information Security Office (ISO) to submit a Security Incident Report via AskEDD.

Recruitment and Referrals

1. Q. As my business expands, I need to locate qualified employees. How can the Employment Development Department help me?
   
   A. The EDD Job Service has an Internet job listing system that can help you. You can enter your job openings into CalJOBS^SM. Job seekers can then view your job requirements and contact you in accordance with the instructions you provide. You can also search and review the database of job seeker resumes and contact those who match your job requirements. If you prefer, EDD can assist you with entering the job order and searching the database for qualified workers. Jobs listed in EDD's CalJOBS^SM are also listed in the national Internet system, America's Job Bank.

Unemployment Insurance

1. Q. How can I as an employer minimize my Unemployment Insurance contribution rate?
   
   A. An employer's contribution rate is based upon the ratio of the reserve account balance to the average base payroll. As the reserve account balance decreases or the average base payroll increases, the ratio decreases. A decrease in the ratio may result in a higher contribution rate.
   
   Employers who maintain a stable payroll and file and pay their taxes on time will generally have a lower Unemployment Insurance (UI) contribution rate. Employers who experience high turnovers or large fluctuations in their payroll and/or do not file and pay their taxes on time will generally have a higher UI contribution rate.
   
   The following are some suggestions that will help minimize UI contribution rates.
   • File and pay tax returns timely.
   • Work with employees to avoid layoffs and voluntary quits. Every separation has a potential to increase your contribution rate.
   • Permit leaves of absence. This helps you keep fully trained personnel.
   • Keep good records. Give written warnings prior to discharging an employee and keep a copy of these written notices and other supporting information to justify any action taken.
   • Conduct an exit interview. This helps you know why an employee is leaving and may result in changes to company policies or procedures that will assist you in retaining your employees.
   • Answer claim notices promptly, accurately and in detail.
   • Provide clear answers to telephone interview questions from EDD personnel.
   
   
   
2. Q. I have recently been laid-off from a job that I have had for the past five years. Will I be able to receive Unemployment Insurance benefits?
   
   A. The Unemployment Insurance Program, commonly referred to as UI, provides weekly unemployment insurance payments for workers who lose their job through no fault of their own. Eligibility for benefits requires that you be able to work, be seeking work, and be willing to accept a suitable job.
   
   More FAQs on Unemployment Insurance

Workforce Development

1. Q. As an employer, I interview many job seekers who do not have the basic skills to perform the duties related to the jobs I am offering. Are there training programs available through the Employment Development Department that prepare youth and unskilled adults for entry into the labor force?
   
   A. Yes, the Employment Development Department performs the administrative control functions (e.g., funding allocations, compliance monitoring, etc.) for the Workforce Investment Act (WIA). WIA programs provide job training and direct employment opportunities to the local community. This includes all adults and youth, especially dislocated workers, public aid recipients, veterans, older workers, and minorities. At the local level, a statewide network of Local Workforce Investment Areas (LWIA) receive WIA funds to maintain current employment and training programs and to establish new programs.

Work Opportunity and Welfare-to-Work Tax Credit

1. Q. Will I be able to receive a tax credit for hiring economically disadvantaged persons, high risk youth or qualified summer youth?
   
   A. Yes, under the Work Opportunity Tax Credit (WOTC) program, an employer may receive a tax credit of up to $2,400 ($1,200 for summer youth) for each employee hired from a targeted group.
   
   More FAQs on WOTC