LOGIN Request a call

← BLOG  |  EMPLOYMENT LAW UPDATES  |  NEWS

Updated Rates for California EDD Benefits for 2024

15 Jan

Share
  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 Rate1.1%
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:

Source References

  1. California SB 951 Eliminates Taxable Wage Limit on Employee Wages Effective January 1, 2024 – A Reminder (VensureHR)
  2. Updated Rates for California EDD Benefits and San Francisco Paid Parental Leave Ordinance for 2024 (Jackson Lewis P.)
  3. California Disability Insurance (SDI) and Paid Family Leave (PFL) (MetLife Services and Solutions, LLC.)

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's California PEO services can help you navigate complex employment laws and keep your business compliant.


This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

Keep Your Business Compliant

Fill out the form below to receive monthly Employment Law Updates right in your inbox.

Keep Your Business Compliant

Fill out the form below to receive monthly Employment Law Updates right in your inbox.

Amazing!

You're all set.

Thanks for subscribing. Be on the look out for the Legal HR updates in your email.

Tracking Convertion image