Understanding State Disability Insurance

State Disability Insurance (SDI) is a program that provides short-term wage replacement benefits to eligible workers who are unable to work due to a non-work-related illness, injury, or pregnancy. While SDI is most commonly associated with California, a few other states have similar programs. This page is designed to help employers understand their responsibilities, the benefits available to employees, and how to manage SDI in various states.

• What is SDI?
• State-Specific SDI Programs
• California
• New York
• New Jersey
• Rhode Island
• Hawaii
• Simplify your paystub management with SecurePayStubs!

What is SDI?

State Disability Insurance (SDI) is a partial wage-replacement insurance plan available in specific states. The SDI program provides short-term benefits to workers unable to work due to a non-work-related illness, injury, or pregnancy.

State-Specific SDI Programs

State-Specific SDI Programs provide short-term disability benefits to eligible workers in individual states, such as California, New York, New Jersey, Rhode Island, and Hawaii, offering wage replacement for non-work-related illnesses, injuries, or pregnancies.

California

California's SDI program is one of the most well-known and comprehensive. It includes both Disability Insurance (DI) and Paid Family Leave (PFL).

California Disability Insurance (DI) : Provides benefits to eligible workers who are unable to work due to a non-work-related illness, injury, or pregnancy.

California Paid Family Leave (PFL) : Provides benefits to workers who need to take time off to care for a seriously ill family member or to bond with a new child.

Eligibility:

SDI : Employees must have earned at least $300 in the base year to qualify.

PFL :Eligibility criteria include contributing to SDI and needing time off work to care for a seriously ill family member, bond with a new child, or participate in a qualifying event for a family member's military deployment.

Tax Rate & Wage Base Limit:

In 2024, California State Disability Insurance (SDI) and Paid Family Leave (PFL) continue to be funded through employee paycheck deductions. For 2024 the tax rate remains at 1.1% of an employee's total wages, with no wage base limit. This means that regardless of whether you provide pay stubs, employees' total wages are subject to the 1.1% deduction, ensuring that benefits are accessible to all qualifying individuals, regardless of their income level.

Contributions:

Contributions to SDI and PFL are solely made by employees through mandatory deductions from their paychecks.

Wage Replacement:

• SDI benefits cover 60%-70% of an employee&apo;s wages, up to $1,620 a week for 52 weeks.
• PFL benefits provide wage replacement at a similar rate for eligible reasons.

Filing a Claim:

Employees can file claims for both SDI and PFL benefits online through the EDD's SDI Online portal or by completing and mailing the paper claim form ( DE 2501) to the EDD.

Private Plans:

Employers can offer voluntary short-term disability benefits, but plans must be approved by the EDD. Filing procedures and contact information for private plans may vary and should be obtained from the employer's HR department or benefits administrator.

The most recent Voluntary Plan (VP) employee contribution and benefit rates, including those for the current and previous years, along with details on how these rates are determined.

Contact Information:

For assistance with SDI, individuals can contact the California Employment Development Department (EDD) at:

Phone: 1-800-480-3287 (English), 1-866-658-8846 (Spanish)
Website: California EDD SDI

New York

New York offers both Disability Benefits (DB) and Paid Family Leave (PFL) for employees:

• Disability Benefits (DB) provide coverage for employees who are unable to work due to a non-work-related illness or injury.
• Paid Family Leave (PFL) offers employees time off to care for a seriously ill family member or to bond with a new child.

Funding Mechanism:

Both New York's Paid Family Leave (PFL) and State Disability Insurance (SDI) programs are sustained through mandatory paycheck deductions.

Program Details:

Let's explore the DB and PFL programs further to gain a deeper understanding of their intricacies and benefits.

Covered Employees:

• PFL : Includes full-time employees with a minimum of 20 hours per week after 26 consecutive weeks, and part-time employees working less than 20 hours weekly after 175 consecutive or non-consecutive days.
• SDI : Individuals who worked at least 50% of full-time hours and earned a minimum of $15,000 in the previous year.

Covered Employers:

• PFL :Applicable to all private employers.
• SDI : Coverage extends to all private employers.

Tax Rates:

• PFL : In 2024, the tax rate remains fixed at 0.373%.
• SDI : Employee deduction rate stands at 0.5% for the year 2024.

Contribution Limits:

Employee Contribution:

• PFL : IEmployees contribute up to 0.5% of their entire wages, with a maximum of $0.60 per week.
• SDI : Employee deduction rate is 0.5% for the year 2024.

Employer Contribution:

• PFL : Employers cover the remaining costs after employee contributions, with a maximum annual contribution capped at $333.25 for the year 2024.
• SDI : Employers are responsible for remitting the remaining costs after employee deductions.

Maximum Benefits:

• PFL : Offers a maximum leave of 12 weeks, with wage replacement set at 67% of the average weekly wage, capped at $1,151.16 per week.
• SDI : Provides wage replacement at 50% of an employee's average weekly wage, with a maximum of $170 per week for 26 weeks.

Filing Claims:

• PFL : Individuals can file a claim for Paid Family Leave benefits through the New York State Paid Family Leave website or by contacting their employer's human resources department.
• SDI : Claims for State Disability Insurance benefits can be filed online through the New York State Department of Labor website or by contacting the Department's Disability Benefits Bureau

New Jersey

New Jersey's Temporary Disability Insurance (TDI) program provides benefits to employees who are unable to work due to a non-work-related illness or injury, and the Family Leave Insurance (FLI) program provides benefits for those caring for a family member or bonding with a new child.

New Jersey Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) Details

Eligibility

To qualify for TDI or FLI benefits, a worker must meet one of the following criteria based on the year of earnings:

For claims based on 2023 earnings:

• Earn at least $260 a week for at least 20 weeks of the base year, or
• Earn a combined total of $13,000 during the base year.

For claims based on 2024 earnings:

• Earn at least $283 a week for at least 20 weeks of the base year, or
• Earn a combined total of $14,200 during the base year.

Tax Rate & Wage Base Limit

Tax Rates:

• TDI : Rates vary from 0.10% to 0.75% depending on the type of employer, but only up to the first $42,300 of the employee’s annual wages.
• FLI : 0.09% up to the wage base limit of $161,400.

Contributions

Employer Contributions:

• TDI : Employer contribution rates vary based on the employer's experience rate.
• FLI : Employers contribute through deductions from employee paychecks.

Employee Contributions:

• TDI : As of current regulations, employees do not contribute directly (0.00% deduction rate).
• FLI : Employees contribute 0.09% of their wages up to the wage base limit.

Wage Replacement

• TDI : 85% of the worker's average weekly wage, up to a maximum weekly benefit amount of $1,055 for up to 26 weeks.
• FLI : 85% of the worker's average weekly wage, up to a maximum weekly benefit amount of $1,055 for up to 12 consecutive weeks or 8 non consecutive weeks in a 12-month period.

Administration

• The New Jersey Department of Labor and Workforce Development (DWLD) oversees both TDI and FLI programs.
• Employees may be required to use any available paid sick time before applying for TDI benefits.

Rhode Island

Rhode Island Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI) Programs - 2024

TDI and TCI Overview:

Rhode Island provides two key programs to support workers needing time off for personal or family health reasons: Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI).

Program Specifics:

Temporary Disability Insurance (TDI):

TDI provides wage replacement benefits to workers who are unable to work due to a non-work-related illness, injury, or pregnancy.

Temporary Caregiver Insurance (TCI):

TCI offers wage replacement benefits to workers who need time off to care for a seriously ill child, spouse, domestic partner, parent, parent-in-law, or grandparent, or to bond with a new child (birth, adoption, or foster care).

Contributions and Rates:

• Maximum Taxable Earnings: $87,000 annually for both TDI and TCI in 2024.
• Employee Deduction Rate: 1.2% of an employee's wages.
• Employer Contribution: None, as both programs are funded solely through employee paycheck deductions.

Wage Replacement:

TDI Benefits:

• 4.62% of the highest wages earned in the employee's base period.
• Maximum weekly benefit of $1,043.
• Benefits can be received for up to 30 weeks in 2024.

TCI Benefits:

• 4.62% of the highest wages earned in the employee's base period.
• Maximum weekly benefit of $1,043.
• Benefits can be received for up to 6 weeks in 2024.

Eligibility Requirements:

To qualify for either TDI or TCI benefits in 2024, employees must meet the following criteria:

• Earn at least $2,800 in one quarter.
• Total taxable wages must be at least 1.5 times the highest quarter of earnings and a minimum of $5,600 during the base year, or
• Earn a total of $16,800 during the base year.

Administration:

Both TDI and TCI are administered by the Rhode Island Department of Labor and Training (DLT). The DLT oversees the processing of claims, ensures compliance with eligibility requirements, and manages the distribution of benefits.

Filing for TDI and TCI Benefits:

• Employees can file for TDI or TCI benefits online through the Rhode Island Department of Labor and Training website.
• Necessary documentation, including medical certification for TDI or proof of need for caregiving leave for TCI, must be submitted.
• It's important to file claims as soon as possible to avoid delays in benefit payments

Hawaii

Hawaii's Temporary Disability Insurance (TDI) program provides benefits to employees who are unable to work due to a non-work-related illness or injury.

Hawaii's Temporary Disability Insurance (TDI) Program - 2024

A concise overview of the specific details and updates regarding Hawaii's TDI program for the year 2024.

Contributions and Maximum Weekly Benefits:

• TDI contributions are based on a maximum taxable earning of $1,374.78 per week.
• Employees contribute up to half the cost of the premium, capped at 0.5% of their weekly wage.
• The maximum weekly benefit amount for 2024 is $798 per week.

Eligibility Requirements:

To qualify for TDI benefits in 2024, individuals must have earned at least $400 a week, working 20 hours a week for at least 14 weeks in the prior year.

Wage Replacement:

TDI benefits provide 58% of the individual's average weekly wage, up to a maximum of $765 per week.

Filing for TDI Benefits:

To apply for TDI benefits in 2024, individuals can submit their application online through the Hawaii Department of Labor and Industrial Relations (DLIR) website or contact the Disability Compensation Division for assistance.

Employer Responsibilities

As an employer, you have specific responsibilities to ensure your employees are aware of and can access SDI benefits in your state:

Post Notices

Display the required notices and posters informing employees about their rights and responsibilities under the SDI program. Each state has specific requirements for these notices.

Provide Information

Inform employees about their SDI rights and how to file a claim. This includes providing new hires with information about SDI and including SDI details in your employee handbook.

Paycheck Deductions

Deduct SDI contributions from employee wages and remit these to the appropriate state agency. Ensure that the correct amount is withheld and submitted on time to avoid penalties.

Verify Claims

Complete and return the employer portion of the claim form when requested by the state agency. This helps verify the employee's information and ensures the claim is processed efficiently.

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This article has been updated from its original publication date of June 5 , 2024.