California Publishes 2023 Rates for Employment Development Department

Employers with employees located in California are 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 Disability Insurance (DI) and Paid Family Leave (PFL).

The 2023 rates are as follows:

Employee Contribution Rate: 0.9%

Wage Ceiling per Employee: $153,164

Maximum Employee Contribution per Year: $1,378.48

Maximum Weekly Benefit: $1,620

Maximum Benefit Amount (52 weeks): $84,240

"Assessment Rate"

(This figure is the product obtained by multiplying the worker contribution rate by 14% or 0.9 x 14%) 0.126%

The change in the contribution rates and the Maximum Weekly Benefit amount are applicable to employers who must comply with San Francisco’s Paid Parental Leave Ordinance (PPLO). San Francisco requires most employers with 20 or more employees worldwide to supplement PFL benefits received by employees to bond with a new child. During the PFL leave period, the PPLO supplemental compensation provided by an employer, added to the PFL wage replacement benefit received from the EDD, must equal 100% of the employee’s gross weekly wage, subject to a cap. For 2023, that cap will be $2,700 per week.

The Assessment Rate is applicable to employers that maintain a state-approved voluntary plan which is a disability insurance plan that an employer can offer to its California employees as a legal alternative to mandatory DI and PFL. The Assessment Rate is the amount that an employer pays to the EDD as an administrative expense for maintaining a voluntary plan.

For more information, please contact compliance@benefitmall.com.