State Disability Insurance

 

Updates were made to the SDI Powerpoint presentation; please navigate to the following link to view the most recent version, 03.01.17 SDI Presentation

 

SDI- Certificated Staff Presentation (Frequently Asked Questions):

 

Frequently asked questions from G3:

No, your contribution is based on wages earned and not on the number of individuals enrolled in SDI at Vaughn.  

Yes, this is an additional employee payroll deduction. The SDI Withholding Rate for 2017 is 0.9 percent.

You must have earned at least $300 during your base period

SDI is a tax you pay. SDI is deducted from your check after federal, state and social security taxes. You will contribute 1% of your waes.

No, you can still participate. The taxable wage limit is $110,902 per employee for 2017. Meaning an employee that earns more than $110,902 per year would contribute no more than $998.12 in SDI benefits.

It depends if your new employer contributes into SDI.

Your new would need to contribute to SDI.

Yes, your SDI contribution is .9% of gross wages.

Please navigate to the bottom of this webpage for an example.

Your disability insurance benefits are not reportable for tax purposes with one exception. If you are receiving unemployment insurance benefits, become unable to work due to a disability, and begin receiving disability insurance benefits, your disability insurance benefits are considered a substitution for your unemployment insurance benefits, and will then be reportable for tax purposes.

AFLAC premiums are determined by various variables such as waiting period, coverage period, and monthly benefit.

 

However to see how SDI contributions impact an Aflac monthly premiums, please navigate to the bottom of this webpage.

 Your disability insurance benefits are not reportable for tax purposes with one exception. If you are receiving unemployment insurance benefits, become unable to work due to a disability, and begin receiving disability insurance benefits, your disability insurance benefits are considered a substitution for your unemployment insurance benefits, and will then be reportable for tax purposes.

You may collect up to 52 weeks of full DI benefits, or the amount of wages in your base period, whichever is less. Please see Powerpoint for information regarding base period wages.  

Yes, all employees will contribute. Vaughn as an entity will enroll in this program.

 

Frequently asked questions from 5th Grade:

SDI is up to 52 weeks. STRS is for disability that exceeds the 52 weeks.

During the FY 16-17 school year 32 employees took a FMLA leave or received a reduction in their salary or bonus due to an excessive use of sick days.This number is made up primarily by certificated and classified full-time staff that had a sick day bank to utilize during their leave. This number does not include classified hourly employees that faced the need for a leave and did not have a sick time bank to draw from and consequently took an unpaid leave.

 

Frequently asked questions from 4th Grade:

The amount is received on a weekly basis.

Vaughn allows employees to determine how they will use their sick time. You can elect to save your sick time and enroll in SDI.

If you decide to collect wages during your disability insurance (DI) claim, your benefits may be affected. Your DI benefits plus sick time wages cannot exceed your regular weekly wages.

Yes, base wages.

The current contribution rate is .9% of all wages unless raised by the state. Your contribution will vary depending on the wages earned. For example, during the months when you earn your bonus or when you work ESY your SDI contribution will be higher.

 

Bear in mind that your weekly benefit amount is determined using the quarter in which an individual was paid the highest wages. So while you pay SDI on these additional earnings, they may be factored in when determining your weekly benefit amount. Please reference slide 15 from the PowerPoint for additional information.

All additional wages are included.

 

Frequently asked questions from Pre K:

Yes, please examples below.

You must have earned at least $300 from which SDI deductions were withheld during a previous period. All employees will contribute, and once they earn $300 in wages in a previous period, they are eligible to use the benefits, assuming they met the eligibility requirements.

SDI is a partial wage replacement insurance plan. So, more than likely, you would not be receiving your salary while you are collecting SDI.

For example, if you are on leave and do not have sick days to use for pay, you may be facing a situation during which you are not generating any income.If you have Aflac, your short-term disability plan will provide some wages.

If you are enrolled in SDI, you would be eligible to receive partial wages through this program.

 

Vaughn policy regarding bonus proration and calculation of your salary upon your return would remain the same. Please see Vaughn Business Office if you would like more information on this topic.

 

Frequently asked questions from Kinder:

Please navigate to the bottom of this webpage for examples.

Aflac provides voluntary benefits. You are not required to participate in this program. Please see Joyce Law-Young for open enrollment periods and information on how to terminate Aflac benefits.

Please navigate to the bottom of this webpage to see the impact on Aflac premiums.

No, Aflac’s short-term disability is for employee injury or disability. It does not include wage replacement if you need to take care of a family member. However, you may be able to purchase a different plan through Aflac that would provide similar PFL coverage.

The SDI Withholding Rate for 2017 is 0.9 percent.

Vaughn allows employees to determine how they will use their sick time. You can elect to save your sick time and enroll in SDI.

If you decide to collect sick time wages during your disability insurance (DI) claim, your benefits may be affected. Your DI benefits plus sick time wages cannot exceed your regular weekly wages.

At service retirement, CalSTRS will convert your unused sick leave to additional service credit using the information your employer provided on the Express Benefit Report form.

Please note you will need to meet eligibility requirements for service retirement. Please navigate to the following link for information on this topic, CalSTRS retirement information.

You are a CalSTRS member 2% at 60 if you were hired in a certificated role before January 1, 2013.

 

You are a CalSTRS member 2% at 62 if you were hired in a certificated role after January 1, 2013.

 

Frequently asked questions from 1st Grade:

The change would go into effect January 2018, per our payroll provider.

SDI benefits are provided by the state.

Unsure of what this question meant. Please e-mail me with more clarification.

Please navigate to the bottom of this webpage to see the impact on Aflac premiums.

Aflac has not made any announcements to increase benefits.

You must have earned at least $300 from which SDI deductions were withheld during a previous period. All employees will contribute, and once they earn $300 in wages in a previous period, they are eligible to use the benefits, assuming they met the eligibility requirements.

The Budget Committee determined that a ⅔ vote from certificated staff will determine whether we will take the next steps in enrolling in SDI or continue with our current plan.

Only certificated staff will vote at this time. Assuming certificated staff approves the measure, the information will be presented to classified staff, and their input will be sought.



California State Disability Insurance (SDI) example:

State Disability Insurance replaces a portion of your wages (55%).

Example A:

 Employee SDI contribution:

  1. Employee’s annual salary $60,000.
  2. Monthly salary: $5,000 ($60,000/12)
  3. SDI monthly payroll deduction: $45 (.9% * $5,000)

All wages are subject to SDI; the formula above only considers monthly salary. Additional wages would be subject to SDI and would result in a higher payroll deduction.

 

2)  Employee SDI benefit:

  1. Employee’s annual salary $60,000.
  2. Wages earned in a quarter: $15,000 ($60,000/4)
  3. SDI weekly benefits (Refer to EDD chart, http://www.edd.ca.gov/pdf_pub_ctr/de2588.pdf) would be $630 to $639 per week
  4. Monthly benefit : $2,520 ($630 * 4 weeks). This is a conservative estimate.

All wages are subject to SDI; the formula above only considers monthly salary. Additional wages earned would increase eligible wages and increase the benefit amount received.

Things to consider:

1.  Waiting period – 7 days

2.  Maximum coverage 12 months

Aflac Short Term Disability without SDI

Aflac Short Term Disability replaces a portion of your wages (60%). Disability benefits are triggered when a physician places an employee on medical leave.

Aflac Disability coverage has options for waiting periods (0/7, 7/7,14/14, 0/30, 30/30, 60/60, 90/90, 180/180) coverage periods (6, 12, 18 and 24 months) and benefit amounts ($500 to $6,000). These variation will determine your monthly premium.

Below are some examples of how a policyholder can tailor the plan to their specific needs.

The maximum disability benefit this employee is eligible for is $3,000.

1. Employee’s  annual salary: $60,000.

2. The maximum benefit amount: $3,000

Aflac without SDI replaces a maximum of 60% of the employee’s wages:

1. Employee’s annual salary: $60,000

2. Employee’s maximum annual benefit: $60,000 * 60%= $36,000

3. Employee’s maximum monthly benefit: $36,000/12= $3,000

Example A:

Employee’s  annual salary: $60,000.

Monthly disability benefit: $3,000 per month

1.  Waiting period: 7 days

2.  Coverage: 12 months

3.  Aflac monthly premium: $179.40

 

Example B:

Employee’s  annual salary: $60,000.

Monthly disability benefit: $3,000 per month

In this example the employee has a month’s worth of savings and sick days specifically set aside for an emergency. The employee’s savings and sick days provide financial assistance for the first thirty days of their disability. They do not begin receiving benefits until after they have completed their thirty day waiting period.

1. Waiting period: 30 days

2.  Coverage: 12 months

3.  Aflac monthly premium: $70.20

 

Example C:

Employee’s  annual salary: $60,000.

Monthly disability benefit: $2,000 per month

In this example the employee only needs $2,000 per month in disability benefits.The employee has a month’s worth of savings and sick days specifically set aside for an emergency. The employee’s savings and sick days provide financial assistance for the first thirty days of their disability. They do not begin receiving benefits until after they have completed their thirty day waiting period. Additionally, the employee only elects coverage for six months.

1.  Waiting period: 30 days

2.  Coverage:6 months

3.  Aflac monthly premium = $39.00

Aflac Short Term Disability with SDI benefits

With State Disability Insurance benefits (55%), Aflac can provide additional disability benefit up to an additional maximum amount of 72%.

 

Below are examples of an employee with an annual salary of $60,000. The employee receives 55% in benefits from SDI, $2,520, and qualifies for an additional $1,080 from Aflac Short Term Disability. In all of the examples below the employee is receiving a monthly benefit of $3,600.

Aflac with SDI replaces a maximum of 72% of the employee’s wages:

1. Employee’s annual salary: $60,000

2. Employee’s maximum annual benefit: $60,000 * 72%= $43,200

3. Employee’s maximum monthly benefit: $43,200/12= $3,600

Example A:

Employee’s  annual salary: $60,000.

Monthly disability benefit: $3,600 per month

                              = $2,520 (SDI monthly benefit) See Section 1 for breakdown

                              + $1,080 (Aflac benefit)  

                                 $ 3,600

Example A:

1. Waiting period: 7 days

2. Coverage: 12 months

3. Aflac monthly premium: $71.76

4. SDI monthly payroll deduction: $45

Total deductions: $116.76

Example B:

1.  Waiting period: 30 days

2.  Coverage: 12 months

3. Aflac monthly premium: $28.08

4. SDI monthly payroll deduction: $45

Total deductions: $73.08

Example C:

1.  Waiting period: 30 days

2. Coverage: 6 months

3.  Aflac monthly premium: $23.40

4. SDI monthly payroll deduction: $45

Total deductions: $68.40

Additional Resources:

Bill Text-AB 908

EDD Frequently Asked Questions