Employer Requirements

California workers pay for Disability Insurance (DI) and Paid Family Leave (PFL) benefits. The funds come from State Disability Insurance (SDI) paycheck deductions. Employers do not pay for the DI or PFL benefits, but you do have actions you must follow.

Employers should:

• Tell employees about laws and regulations for employment, benefits, and working conditions.
• Withhold and send SDI contributions to us.
• Respond to us when employees file claims.

Independent Contractors and Misclassified Workers

If you hire independent contractors, review:

• Independent Contractor Reporting
• California Independent Contractor Reporting FAQs

If we determine that workers are misclassified, review:

• Information Sheet: Reporting Wages and Making Payments Following an Assessment for Misclassified Workers (DE 231MW) (PDF).

Posters and Notices

Employers must post and provide this SDI information to their workers:

• Notice to Employees: Unemployment Insurance/Disability Insurance/Paid Family Leave (DE 1857A)– This poster tells employees about their right to claim UI, DI, and PFL benefits. If UI does not cover employees, you must post the Notice to Employees (DE 1858).
• Disability Insurance Provisions (DE 2515)– Give this brochure to:
  • New hires
  • Employees who ask for time off for pregnancy or childbirth
  • Employees who ask for time off work for a non-work-related illness, injury, or surgery
• Paid Family Leave Benefits (DE 2511)– Give this Brochure to:
  • New hires
  • Employees who ask to take time off work to bond with a new child
  • Employees who ask to take time off work to care for a seriously ill family member
  • Employees who ask to take time off to support a family member in the US armed forces being deployed abroad

All brochures and posters are free to employers. You can:

• Order all publications on the Online Forms and Publicationspage or call our toll-free number.
• Download and print DI Forms and Publicationsand PFL Forms and Publications.

State Disability Insurance Contribution Rates

Employers must:

• Withhold mandatory payroll deductions for DI and PFL.
• Send contributions to the EDD Tax Branch.

To find current rates, review State Disability Insurance Withholding Rate on the Tax Rate and Withholding Schedules.

If you have contribution rate questions, contact your local Employment Tax Office.

Respond to Us for Employee Claims

When an employee files a claim, we will send you notices. By law, you must respond to these notices:

• Notice to Employer of Disability Insurance Claim Filed (DE 2503) – Sent to you after the employee files a DI claim. You can use SDI Online or the paper form to verify the employee’s information on their claim. You must complete and return the form to us within two working days.
• Notice of Paid Family Leave (PFL) Claim Filed (DE 2503F) – Sent to you after the employee has filed a PFL claim. The form is to verify the information the employee provided on their claim. You must complete and return the paper form to us within two working days.

San Francisco Paid Parental Leave Ordinance

If you employ workers in San Francisco, you may need to pay part of their wages. This applies when employees receive PFL benefits for bonding with a new child through:

• Childbirth
• Adoption
• Foster care placement

For more information, read the Paid Parental Leave Ordinance.