disability insurance

State Disability Insurance

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 contribution Rate for 2008 is 0.8%, and the SDI taxable wage limit is $86,698 per employee for calendar year 2008.


The plan provides a tax-free replacement of income of 55% of an employee's average weekly pay, up to a maximum weekly benefit, which, was $917.00 ($50/week minimum) in 2008. 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 the beneficiary had voluntary self-employment coverage.

Family Temporary Disability Insurance

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.

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