Integration of Benefits

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Integration of wages with Disability Insurance (DI) or Paid Family Leave (PFL) benefits, also known as coordination or supplementation, is when an employee receives their full DI or PFL weekly benefit amount and are also paid wages from their employer or use available leave to cover the difference. With this process, an employee could receive up to 100 percent of their normal weekly salary during their DI or PFL benefit period.

For example, if an employee’s current gross weekly wage is $500 and their DI or PFL weekly benefit amount is $275, the employee has an existing wage loss of $225 per week. Their employer can integrate up to $225 per week to equal 100 percent of their normal weekly salary.

Employees can use any combination of available leave credits (e.g., sick leave, vacation, paid time off, holiday pay, employer provided short- or long-term disability plans, etc.) to supplement benefits. These leave credits can also be used during the seven-day waiting period for DI claims. PFL does not have a benefit waiting period, so wage integration can start immediately on the first day of the PFL claim.

Note: Per California Unemployment Insurance Code Section 2656, 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 responsibility to review the DI or PFL benefit information to make sure the right amount of wages are integrated.

Employees

You should verify with your employer or human resources office to confirm that they have an integration policy.

Your employer may need to contact us to verify how much you are being paid. We may disclose your weekly benefit amount to your employer if you provide authorization on the initial claim forms or submit a separate written authorization. To allow us to release this information, mark Yes to the question, “May we disclose benefit payment information to your employer(s)?” on claims filed using SDI Online or paper forms. If you do not answer the question or check No, we cannot provide payment information to your employer. This can cause delays or a disqualification on your claim.

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

If eligible for DI or PFL, you will receive a Notice of Computation (DE429D/DE429DF) providing your claim effective date, weekly benefit amount, and maximum benefit amount. With each benefit payment, you’ll receive a payment notification with the payment amount and period covered. You should share this information with your employer to prevent any benefit overpayment.

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 write one of the following 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

For a list of common types of pay that are considered regular wages, visit Reporting Your Wages.

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

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

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 drop down 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 drop down menu to provide the answer.

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

  1. For question A21, 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

For a list of common types of pay that are considered regular wages, visit Reporting Your Wages.

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

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

Employers

It is up to you to establish and maintain a policy for correctly determining how much to pay your employee. We do not regulate this process.

If your employee is eligible for DI or PFL, they will receive a Notice of Computation (DE 429D/DE 429DF) providing their claim effective date, weekly benefit amount, and maximum benefit amount. With each benefit payment, they’ll receive a payment notification with the payment amount and period covered. Your employee should provide these forms to you to verify the benefit amount they are receiving.

You have the option to be added to the State Disability Insurance Integration Lists (LSDI/LPFL). If you become an approved integration employer, we do not investigate the wages. 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

Note: If you have been approved to integrate wages, you can apply the process to any current and future employees.

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

If you’re using SDI Online:

  1. In Section 4D - Wage Information, select Yes to the question asking if wages will be coordinated/integrated.
  2. Answer the additional questions regarding integration details.

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.

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.