Also known as California State Disability Insurance, CASDI is a program for short-term insurance in the California region. This insurance program of California allows temporarily disabled workers to get substantial benefits and compensation until they are fit to get back to work. This program is only for eligible workers in California who became temporarily disabled due to illness, pregnancy, or any other injury. With this insurance policy, employees will get tax-free wage replacement benefits on a weekly basis for up to a year.
CASDI Rate: What is it?
In simple terms, the CASDI rate is the tax percentage withheld from an employee's paycheck for their contribution to this short-term insurance program. The CASDI rate is found to be around 1.2% in 2021, according to the Employee Development Department of California. But as for the maximum contribution, it’s found to be $1,540 for every employee per year.
Where Does the Funding for CASDI Come from?
The income tax division of California provides a major amount of funds for CASDI that’s withheld from the wages of California employees.
How to Determine the Base Period of CASDI?
It’s crucial to have proper knowledge about the base period in order to calculate the benefits of CASDI. You must know that CASDI gives financial aid for only a year which is equal to 55% of the average Gross income of that employee. The base period of CASDI consists of four quarters, and an employee's average pay will decide how much benefit they’ll get under this system.
Under CASDI, How Much Can an Eligible Individual Receive?
Under CSDI, a temporarily disabled employee can earn up to $1,357 on a weekly basis. If that amount is multiplied by 52, that employee gets $70,564 of total yearly benefits.
What are the Eligibility Criteria for CASDI?
An employee must fulfill the necessary requirements to be eligible for the CASDA, such as:
Not able to work regularly for a minimum of 8 consecutive days.
Already recruited or looking for recruitment when the disability occurred.
Lost a portion of wages due to disability.
Whether you got a paycheck of fewer than $300 from where CASDI deductions from the past year were withheld.
Being under the treatment of a licensed doctor after the first 8 days of disability.
A certificate of disability from a medical practitioner or physician.
Do You have to Pay Taxes for CASDI?
The answer is, No. The authorities of California didn’t make CASDI taxable. But if disability benefits, such as CASDI are given as a substitute for unemployment benefits, they become taxable. For instance, if a person becomes disabled while getting unemployment benefits, they’ll be entitled to disability benefits. But then the disability benefits will be taxable for that person.