| Update Applicable to: | Effective date |
| All employers with employees in the state of California | January 1, 2024 |
What happened?
The California Employment Development Department (EDD) has released the 2024 Voluntary Plan Employee Contribution and Benefit Rate.
What are the details?
Employers with employees located in California are generally required to withhold and send state disability contributions to the EDD.
- The Employee Contribution Rate is the percentage withheld from the wages of employees who are covered by the Disability Insurance (DI) and Paid Family Leave (PFL) programs.
Senate Bill (SB) 951 eliminated the Maximum Contribution and Taxable Wage Ceiling and is effective January 1, 2024. These concepts can be disregarded by employers but are subject to future legislation.
| State Disability Insurance | |
| 2024 Voluntary Plan Employee Contribution and Benefit Rate Effective January 1, 2024 | |
| Employee Contribution Rate | 1.1% |
| Taxable Wage Ceiling (per employee per year) | $NA |
| Maximum Contribution (per employee per year) | $NA |
| Maximum Weekly Benefit Amount (WBA) | $1,620 |
| Maximum Benefit Amount (WBA X 52 weeks) | $84,240 |
| Assessment Rate: This figure is the product obtained by multiplying the worker contribution rate by 14% or 1.1 X 14% = 0.154% per CUIC 3252 (b) | 0.154% |
Business Considerations
- Considering the increase in California SDI taxes that will apply starting in 1/1/2024 to employees earning more than the current SDI contribution limit, employers may want to evaluate if a voluntary plan can lower costs.
- Employers will need to make the necessary adjustments based on the changes.
Resources:
- 2024 Voluntary Plan Employee Contribution and Benefit Rate
- Contribution Rates and Benefit Amounts (EDD)
Source References
- California SB 951 Eliminates Taxable Wage Limit on Employee Wages Effective January 1, 2024 – A Reminder (VensureHR)
- Updated Rates for California EDD Benefits and San Francisco Paid Parental Leave Ordinance for 2024 (Jackson Lewis P.)
- California Disability Insurance (SDI) and Paid Family Leave (PFL) (MetLife Services and Solutions, LLC.)
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