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California State Disability Insurance (SDI or CASDI) is a statutory (state-regulated and state-audited) state disability program of the State of California for short-term disability income replacement. The program has been in effect since 1946.
The costs of the program are covered by contributions to the State Fund in the form of SDI tax paid by employees, optionally by employers. Employee contributions to the state fund are deductible as state taxes.
The table below summarizes the contribution rates, taxable wage limits and maximum withholdings per employee since 1996:
|Year||Rate||Eligible Wages||Max Withholding|
The plan provides tax-free replacement of income of 55% of an employee's average weekly pay, up to a maximum weekly benefit, which was $959.00 ($50/week minimum) in 2009. For 2010 and 2011, the maximum weekly benefit increased to $987.00. In 2012 it increased to $1011.00 and in 2013 has reached $1067.00 per week. Benefits become available on the eighth consecutive day of disability and continue for up to 52 weeks of disability if the beneficiary paid SDI taxes as an employee, 39 weeks if the beneficiary had voluntary self-employment coverage.
SDI is deductible on federal returns (Schedule A) because it is a considered a state income tax.
In 2002, California enacted the Paid Family Leave (PFL) insurance program, also known as the Family Temporary Disability Insurance (FTDI) program, which extends unemployment disability compensation to cover individuals who take time off work to care for a seriously ill family member or bond with a new child.