Recently, the California Employment Development Department (EDD) released updated 2022 State Disability Insurance (SDI) program contribution and benefit rates. The maximum paid family leave benefit provided under SDI is also relevant for purposes of calculating the required supplemental compensation rate under the San Francisco Paid Parental Leave Ordinance (PPLO).
California State Disability Insurance (SDI)
California employees are subject to a payroll tax used to fund the SDI program, which provides disability insurance (DI) and paid family leave (PFL) to eligible workers. Employers with California employees must take the payroll deductions and remit those contributions to EDD (unless they have an approved Voluntary Plan).
The employee contribution rate, maximum contribution, and maximum benefit amounts for the SDI program change annually. Effective January 1, 2022, the contribution and benefit rates are as follows.
| Employee Contribution Rate | 1.1% |
| Taxable Wage Ceiling (per employee per year) | $145,600 |
| Maximum Contribution (per employee per year) | $1,601.60 |
| Maximum Weekly Benefit Amount | $1,540 |
| Maximum Benefit Amount | $80,080 |
| Assessment Rate | 0.168% |
For 2022, California employees who are covered by DI and PFL must contribute 1.1% on their first $145,600 in wages, for a contribution of up to $1,601.60 for the year. If an employer maintains an approved Voluntary Plan, which provides DI and PFL benefits through an employer-run program in lieu of the state-run program, the employer must pay an “assessment rate” of 0.168% to EDD as an administrative expense.
In 2022, eligible California employees can receive an SDI benefit equal to 60-70% of their regular wages, up to $1,540 per week and up to $80,080 in total.
San Francisco Paid Parental Leave Ordinance (SF PPLO)
The 2022 PFL maximum weekly benefit amount is also relevant for purposes of calculating supplemental compensation under SF PPLO. As a reminder, SF PPLO requires employers with 20 or more employees worldwide to provide supplemental compensation to certain SF employees who receive California PFL for the purposes of bonding with a new child.
Employers must provide an amount in supplemental compensation so that, together with the CA PFL wage replacement, a covered employee receives 100% of their gross weekly wages, subject to a cap. The 2022 PPFLO cap is $2,567 per week. For more on calculating 2022 supplemental benefits, see the official PPLO calculator.
Additional Resources
- 2022 State Disability Insurance (SDI) program contribution and benefit rates
- San Francisco Paid Parental Leave Ordinance
- SF PPLO 2022 Supplemental Benefits Calculator
Disclaimer: This content is intended for informational purposes only and should not be construed as legal, medical or tax advice. It provides general information and is not intended to encompass all compliance and legal obligations that may be applicable. This information and any questions as to your specific circumstances should be reviewed with your respective legal counsel and/or tax advisor as we do not provide legal or tax advice. Please note that this information may be subject to change based on legislative changes. © 2022 Sequoia Benefits & Insurance Services, LLC. All Rights Reserved
