California Disability Insurance (DI) and Paid Family Leave (PFL) benefits are funded by workers through the State Disability Insurance (SDI) deduction from worker’s paychecks. While employers do not pay for the DI or PFL benefits, they do have the following responsibilities.
- Inform their employees of laws and regulations about employment, benefits, and working conditions.
- Withhold and send SDI contributions to the EDD.
- Respond to the EDD for employee claims.
Independent Contractors and Misclassified Workers
If you are an employer who hires independent contractors, please see Independent Contractor Reporting and California Independent Contractor Reporting FAQs for more information on reporting requirements.
If the EDD determines that one or more workers classified by an employer as independent contractors should have been classified as employees, please see the Information Sheet: Reporting Wages and Making Payments Following an Assessment for Misclassified Workers (DE 231MW) (PDF).
Posters and Notices
Employers are required to withhold and send SDI contributions to the EDD. They must also inform their employees of laws and regulations pertaining to employment, benefits, and working conditions. Currently, employers must provide information about SDI to their employees by posting and providing the following:
- Notice to Employees: Unemployment Insurance/Disability Insurance/Paid Family Leave (DE 1857A) – Poster tells employees of their right to claim UI, DI, and PFL benefits. If employees are not covered by UI, employers must post the Notice to Employees (DE 1858).
- Disability Insurance Provisions (DE 2515) – Brochure for new hires and when an employee tells their employer they need to take time off work due to a non-work-related illness, injury, pregnancy, or childbirth.
- Paid Family Leave Benefits (DE 2511) – Brochure for new hires and when an employee tells their employer they need to take time off work to care for a seriously ill family member, bond with a new child, or participate in a qualifying event because of an eligible family member’s military deployment to a foreign country.
The pamphlets and poster are provided to employers at no cost. You can order forms and publications through the Online Forms and Publications page or by calling our toll-free number. You can also download and print DI Forms and Publications and PFL Forms and Publications.
State Disability Insurance Contribution Rates
Employers are required to withhold mandatory employee payroll deductions and send those contributions to the EDD for DI and PFL coverage.
Please use the current State Disability Insurance Withholding Rate on the Tax Rate and Withholding Schedules.
If you have questions about the contribution rate, contact your local Employment Tax Office.
Note: Effective January 1, 2024, SB 951 removes the Taxable Wage Limit.
Respond to the EDD for Employee Claims
When an employee files a claim, you are required by law to respond to the following notices sent by the EDD:
- Notice to Employer of Disability Insurance Claim Filed (DE 2503) – Sent to you after the employee has filed a DI claim. You must complete and return to the EDD within two working days using either SDI Online or the paper form to verify the information the employee provided on their claim.
- Notice of Paid Family Leave (PFL) Claim Filed (DE 2503F) – Sent to you after the employee has filed a PFL claim. You must complete and return the paper form to the EDD within two working days to verify the information the employee provided on their claim.
San Francisco Paid Parental Leave Ordinance
Employers with employees working in San Francisco: You may be required to supplement employee wages if they are receiving PFL benefits for bonding with a new child through birth, adoption, or foster care placement. For more information, view the Paid Parental Leave Ordinance.