Have you ever seen CASDI-E on your online paystub? Do you know what it means? No clue, don’t worry, we have you covered all about CASDI-E in this very guide. Read along to know more about it.
What is CASDI?
CASDI or California State Disability Insurance is a state-run insurance program that the Employment Development Department implements.
The program consists of two main components:
- Disability Insurance (DI): It offers short-term wage replacement benefits to employees who are unable to work due to their disability.
- Paid Family Leave (PFL): It offers benefits for employees who need time off to bond with their family, care for a serious illness or to manage military-related needs.
This small deduction plays a huge role in helping workers in California. It provides financial assistance when you’re unable to work due to illness or even when you need to bond with a child.
According to the Employment Development Department (EDD), California State Disability Insurance (CASDI) paid over $8.4 billion in benefits last year alone, supporting hundreds of thousands of workers during tough economic times.
What is CASDI-E?
CASDI-E, as it appears on an online paystub, stands for California State Disability Insurance-Employee Contribution. It represents a payroll deduction from an employee’s wages to fund California’s State Disability Insurance (SDI) program.
The E in CASDI-E highlights the contribution made by employees and not the employers. This deduction ensures that the financial support for eligible employees who are unable to work due to non-work-related disabilities and provides benefits under the label of the Paid Family Leave (PFL) program.
How does the CASDI-E Tax Work?
The CASDI-E is a payroll deduction that ensures that Californian workers have access to essential financial benefits during times of need. Entirely funded by employee contributions, this deduction appears as CASDI-E on pay stubs and supports both the Disability Insurance (DI) and Paid Family Leave (PFL) programs.
You can use the Online Paystub generator to generate pay stubs for your California Disability Insurance.
Who pays for CASDI?
Employees pay for CASDI and not the employer. As a California employer, you can deduct the CASDI payroll taxes from each employee’s wages each pay period. If you use an online payroll service, it can take care of deducting the SDI tax for you.
When employees fill out the information for CASDI on the W-2 form, they should insert the dollar amount that is then withheld from Box 14. This will allow them to claim it as an itemized deduction for state and local income taxes.
Disability Insurance (DI) and Paid Family Leave (PFL) Stats
The existence of CASDI shows that workers are given good cash assistance-entering temporary vicissitudes. Over 755,000 claims were filed, with an average weekly payout of $783, attesting to the program’s salience in helping employees who underwent some period of rage or injury.
The California EDD has declared an increase in contribution rates in 2025. The increase in the SDI withholding rate to 1.2% of employees’ wages will take effect on January 1, 2025.
FAQS
1- How does Disability Insurance work in California?
California State Disability Insurance is a short-term public insurance program that is run by California’s Employment Development Department (EDD). SDI pays you about 70-90% of what you used to make at work because you have a non-work-related illness. These SDI payments might continue for up to a year.
2- How long can you stay on Disability Insurance in California?
You might be able to receive between $50 and $1,681 each week for up to 52 weeks, depending on the wages you have earned for 5-18 months before your claim start date.
3- Who can certify disability in California?
Only a particular physician can certify claims. Out-of-state and out-of-country physicians can also certify. Health professionals must be licensed by their local licensing entity.
4- How is California Disability paid?
You can choose how you want to receive your benefit payment when you file your claim. You have options such as: Direct deposit or Debit card.
Key Takeaways
The CASDI-E tax shown on your online paystub is a vital method enabling California’s employees to access benefits during a family crisis. Funding the Disability Insurance and Paid Family Leave programs ensures financial stability and work-life balance.
