California Disability Insurance (DI) and Paid Family Leave (PFL) benefits are funded by workers through the State Disability Insurance (SDI) deduction from worker’s paychecks. While employers do not pay for the DI or PFL benefits, they do have the following responsibilities.
If you are an employer who hires independent contractors, please see Independent Contractor Reporting and California Independent Contractor Reporting FAQs for more information on reporting requirements.
If the EDD determines that one or more workers classified by an employer as independent contractors should have been classified as employees, please see the Information Sheet: Reporting Wages and Making Payments Following an Assessment for Misclassified Workers (DE 231MW) (PDF).
Employers are required to withhold and send SDI contributions to the EDD. They must also inform their employees of laws and regulations pertaining to employment, benefits, and working conditions. Currently, employers must provide information about SDI to their employees by posting and providing the following:
The pamphlets and poster are provided to employers at no cost. You can order forms and publications through the Online Forms and Publications page or by calling our toll-free number. You can also download and print DI Forms and Publications and PFL Forms and Publications.
Employers are required to withhold mandatory employee payroll deductions and send those contributions to the EDD for DI and PFL coverage.
If you have questions about the contribution rate, contact your local Employment Tax Office.
Note: Effective January 1, 2024, SB 951 removes the Taxable Wage Limit.
When an employee files a claim, you are required by law to respond to the following notices sent by the EDD:
Employers with employees working in San Francisco: You may be required to supplement employee wages if they are receiving PFL benefits for bonding with a new child through birth, adoption, or foster care placement. For more information, view the Paid Parental Leave Ordinance.