Elective Coverage FAQs
Disability Insurance Elective Coverage (DIEC), also known as Elective Coverage (EC), is an option for self-employed individuals and employers to apply for State Disability Insurance (SDI) coverage. SDI EC coverage includes program eligibility to both Disability Insurance (DI) and Paid Family Leave (PFL) benefits.
To determine if you are a self-employed individual or employer, review the Information Sheet: Elective Coverage for Employers and Self-Employed Individuals (DE 231EC). For additional information and resources, visit the Getting Started webpage.
No, there is usually a minimum requirement of six months participation from the approved start date of your EC plan before you are eligible for benefits based on your EC contributions. However, if you worked as an employee in California for an employer who previously deducted SDI contributions for you approximately 5 to 18 months prior to your EC plan, you may have reported wage earnings in your base period, which may give you a valid claim to begin your DI or PFL leave sooner.
Visit Disability Insurance Elective Coverage to learn more. You can also review the Information Sheet: Elective Coverage for Employers and Self-Employed Individuals (DE 231EC) (PDF) and download an Application for Disability Insurance Elective Coverage (DE 1378DI) (PDF). These can be downloaded or ordered from the Taxpayer Assistance Center at 1-888-745-3886.
Life insurance salespersons who are not required to file a Schedule SE should use the net income from IRS Form 1040 Schedule C (line 31) in place of Schedule SE net profit to compute the annual premium.
For 2020, the annual premium rate is 5.25 percent of the amount reported as net profit up to $122,909, the taxable wage ceiling for State Disability Insurance contributions. The rate is evaluated and recomputed each calendar year on or about November 30.
After choosing EC, you must stay in the plan for two full years. After that, if you wish to cancel your coverage, submit your cancellation request during the month of January. Cancellation will be effective January 1.
To continue your EC eligibility, you must show a minimum profit of $4,600 per year. If your profits fall below this level for three consecutive years, the EDD may cancel your coverage.
For more information about the EC program, you may contact a DIEC Customer Service Representative at 1-916-654-6288 or the Taxpayer Assistance Center at 1-888-745-3886.
You can download the following forms or call 1-916-554-7104 to have them mailed:
- Application for Unemployment Insurance (UI) and Disability Insurance (DI) Elective Coverage for Employees Exempted Under the California Unemployment Insurance Code (CUIC) (DE1378) (PDF).
- Application for Unemployment Insurance, Disability Insurance, and Paid Family leave Elective Coverage Under Section 708(a) of the Unemployment Insurance Code (DE 1378A) (PDF).
- Application for Disability Insurance Elective Coverage (DE 1378DI) (PDF).
For more information about DI, call 1-800-480-3287 or 1-866-658-8846 (en español).
For more information about PFL, call 1-877-238-4373 or 1-877-379-3819 (en español).