FAQ - Employers Benefits
- How soon will my employee receive their first benefit payment from Disability Insurance or Paid Family Leave after they mail their claim form?
We calculate the weekly benefit amount based on the calendar quarter with the highest earnings in the claimants base period. The base period covers 12 months and is divided into four consecutive quarters of three months each. The wages the employee was paid approximately 5 to 18 months before the claim begins are included in the base period (they must be subject to the State Disability Insurance [SDI] tax). The base period does not include wages paid at the time the claim begins. For more information, visit Calculating (DI) Benefit Payment Amounts and Calculating (PFL) Benefit Payment Amounts.
No. An employee may not receive Paid Family Leave insurance benefits if they are receiving or will receive SDI, Unemployment Insurance, or workers’ compensation benefits for the same period. Other benefits, such as employer paid benefits for baby bonding, may also affect payment of Paid Family Leave benefits.
The SDI program treats sick leave wages as wages earned. SDI benefits will be reduced by the amount of sick leave wages received, and may render the employee ineligible for benefits depending on the amount of sick leave wages received and the employee’s weekly benefit amount.
If you integrate (coordinate) the sick leave (pay the employee sick leave wages in an amount which is the difference between the SDI benefit and the employee's full wage), the sick leave benefits received by the employee will not affect the SDI benefit.
- My company’s policy is to coordinate (integrate) unused sick leave with SDI. May we do this with Paid Family Leave too?
Your DI benefits are not reportable for tax purposes with one exception. If you are receiving Unemployment Insurance (UI) benefits, become unable to work due to a disability, and begin receiving DI benefits, your DI benefits are considered a substitution for your UI benefits, and will then be reportable for tax purposes. If DI benefits are reportable, a notice will accompany the first benefit payment sent to you advising that the benefits are being reported to the Internal Revenue Service (IRS). In January the EDD will provide you with a 1099G form showing the reportable amounts paid (no more than the original UI maximum) and forward a copy of the 1099G to the Internal Revenue Service.
PFL benefits are reportable 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 IRS. PFL benefits are not taxable or reportable to the California State Franchise Tax Board.