Individuals employed in the state of California may be entitled to temporary benefits for a disability caused by non-occupational sickness or accident, including pregnancy and related medical conditions. Individuals may also be eligible for paid family leave (PFL) benefits when they need time off work for baby bonding, to care for a loved one, or for a qualifying military exigency. Employers employing one or more employees in the state are subject to these laws.

The California Employment Development Department have released Employee Contribution and Benefits Rates for 2023.The PFL program is funded solely through employee contributions and is incorporated into the state disability insurance withholding rate.

For 2023, the employee contribution rate is 0.9% of the maximum yearly wage of $153,164 for a maximum yearly contribution of $1,378.38 per employee. The maximum weekly benefit equals 60% to 70% of the employee’s weekly wages earned 5 to 18 months before the employee’s claim start date. For 2023, the maximum weekly benefit is $1,620.

Employers in San Francisco employing 20 or more employees are subject to the City’s Paid Parental Leave Ordinance (PPLO) which requires employers to provide supplemental compensation to an employee who is receiving California Paid Family Leave (PFL) for purposes of bonding with a new child. The amount of PFL compensation plus the supplemental PPLO compensation must equal 100% of the employee’s gross weekly wage subject to a cap of $2,700 per week for 2023.

Additional information about temporary disability and paid family leave can be found on California’s Employment Development Department website. Additional information about San Francisco’s Paid Parental Leave Ordinance can be found on the City’s website.

The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.