[1] 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.
[2] The table below summarizes the contribution rates, taxable wage limits and maximum withholdings per employee since 1996: The plan provides up to one year of tax-free benefits equal to 55% of the recipient's average gross (pre-tax) income in their highest earning base period quarter.
For 2018–2021, the benefit was changed to 60% of regular weekly salary if earning above $23,972 annually and 70% of regular weekly salary if earning less than that.
Maximum weekly benefit [8] SDI is deductible on federal returns (Schedule A) because it is 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.