SDI and Paid Family Leave

What is an SDI/Short Term disability Insurance?

Short term disability (STD) pays a percentage of your salary if you become temporarily disabled, meaning that you are not able to work for a short period of time due to sickness or injury.    Although Short term disability insurance is available for various medical reasons, I’m going to cover the SDI that pertains exclusive to pregnancy. You can get the SDI benefits though your employer AND/OR from your state government.

Does my state provide an SDI?

There are five states in USA offering the State Disability Insurance. They are California, Hawaii, New Jersey, New York, Rhode Island, and the Commonwealth of Puerto Rico.

What is the Eligibility?

As long as you have earned at least $300 from which SDI deductions were withheld during a previous period,  you are eligible to get the SDI benefits for pregnancy.

Do I have to be working for a certain number of days/months/years to be eligible for SDI?
Eligibility for SDI is based on the earnings shown in your base period. The wages you earn approximately 6 to 18 months before the disability claim begins are included in the base period (they must have been subject to the SDI tax/contribution). Your base period does not include wages paid at the time your disability begins.

How long can I go on disability?

The usual disability period for a NORMAL pregnancy is up to four weeks before the expected delivery date and up to six weeks after the actual delivery. However, your doctor may certify to a longer period if the delivery is by Cesarean section, if there are medical complications, or if you are unable to perform your regular or customary job duties.

How much is the benefit amount?

It depends on what your income is during the base period. Here’s a chart that provides you details on the benefit   DI and PFL Weekly Benefits Chart   and how the base period is calculated. You could get as much as $959 per week.

 When should I apply for it?

Your claim begins when you are suffering a loss of wages and your doctor confirms that you have a disability which prevents you from doing your regular or customary job duties. However, if your doctor certifies you must limit your hours of work or modify your work duties due to your pregnancy disability you may be eligible for partial or full disability insurance benefits.

• Make sure you apply within 49 days of the date you became disabled(When the maternity leave begins)
• If Friday is your last day at work, put the Saturday as the day when the disability began rather than Monday. Your daily benefit amount is your weekly benefit amount divided by seven. So, if you started your disability on Monday, you will loose the benefit for the first 2 days.

 How do I apply?

There is a small application that needs to be filled you. You can get it here. Or you can get one from your Gynecologist’s office.  Some offices charge a small fee and send it themselves after you complete your portion of the application.

How soon will I receive my first check from State Disability Insurance (SDI) after I mail my claim form?
 SDI checks are sent within two weeks after a properly completed claim is received in the SDI field office. 

What is a paid family leave?

 In 2002, historic legislation was enacted to extend disability compensation to cover individuals who take time off of work to care for a seriously ill child, spouse, parent, or registered domestic partner, or to bond with a new minor child.

In California, Paid Family leave provides up to six weeks of benefits for individuals who must take time off to care for a seriously ill child, spouse, parent, or registered domestic partner, or to bond with a new minor child.

How do I apply for a paid family leave?

There is no separate application for PFL.  Once your SDI exhausts, you will You will automatically be sent a Claim for Paid Family Leave (PFL) Benefits – New Mother, DE 2501FP, In that , you are reuired to state if there is a need for you to extend your SDI ( Your Family Practitionor will have to approve it, if you did need to extend it. Gynecologist will approve only the first 6 weeks of postpartum) or if you would wish to apply for PFL.  You can also choose to apply for only part of the duration and save the rest of the PFL for future.

 Is there a waiting period for Paid Family Leave insurance benefits?
Both Disability Insurance and Paid Family Leave require a seven (7) calendar day non-payable waiting period. The required seven-day waiting period does not need to be taken seven days in a row. For example, if care were provided one day per week, the seven-day waiting period would be served over a seven-week period. Benefits are payable once the seven days have been served and all other eligibility criteria are met. You must be off work at least eight (8) calendar days. 

Is SDI taxable? Disability Insurance (DI) vs. Paid Family Leave (PFL)?
Disability Insurance (DI) benefits are not taxable except when considered to be a substitute for unemployment compensation when paid to an individual who is ineligible for unemployment insurance (UI) benefits solely because of the disability. Only in this instance, where DI benefits are received in lieu of UI benefits, will the EDD provide the claimant with a 1099G form showing amounts paid which are reportable (no more than the original UI maximum) and forward a copy of the 1099G to the Internal Revenue Service (IRS).

Paid Family Leave (PFL) benefits are taxable for federal purposes but not state tax purposes. The EDD will provide all claimants with a 1099G form and forward a copy of the 1099G to the federal IRS. The PFL benefits are not taxable or reportable to the California State Franchise Tax Board.

Are SDI deductions pre-taxed (deducted from the paycheck prior to paying federal, state and social security taxes)?
No, SDI deductions are not pre-taxed.

Employer Sponsored Short term Disability Insurance

For employer sponsored programs, please check with your HR for details on the program. Most employer sponsored programs will allow you to receive benefits from both programs simultaneously.