Can I get SDI benefits as 1099 contractor after transitioning from W2? Need to enroll in Elective Coverage

my friend did this last year. you need to apply for something called elective coverage with edd. pretty sure you have to make at least $4,600 or something every 3 months to qualify. not sure about waiting period tho

Yes, you can absolutely maintain SDI coverage as a 1099 contractor through the EDD Elective Coverage Program. I've been doing this for 3 years as a self-employed consultant. Here's what you need to know: 1. You need to file a DE 1378N application form with EDD 2. You must have a net profit of at least $4,830 per quarter (as of 2025) 3. There IS a waiting period - you must be enrolled for 6 months before you can claim disability benefits 4. The contribution rate is currently 1.1% of your net profit (up to the annual wage limit) 5. You'll need to commit to 2 years minimum in the program The process isn't too complicated, but the waiting period is crucial to understand given your health situation. The coverage applies to both SDI and Paid Family Leave.

Im in kinda the same boat!! They fired me after my pregnancy leave ended even tho that's illegal! Anyways I just started doing doordash and instacart as my main income and I have NO IDEA how to get disability coverage either. Following this thread for answers!!

I want to add some important information about Elective Coverage that hasn't been mentioned yet. I work with several independent contractors who navigate this system: - Your coverage costs are based on an "assumed" income amount that YOU choose when you sign up (within limits based on your past earnings) - You must pay contributions for at least 2 quarters before filing a disability claim - Benefits are calculated based on that assumed income amount, not your actual earnings during any quarter - If you have a corporation, the process is different (Elective Coverage for Employers DE 1378) - You can't backdate coverage, so apply ASAP Also, be aware that the income requirements can be met through multiple self-employment ventures combined. The application review process typically takes 2-3 weeks. The trickiest part most people face is understanding that your contribution amount AND your potential benefit amount are based on your "assumed" income declaration, not your actual fluctuating 1099 income.

just be aware EDD is a NIGHTMARE to deal with!!! Took me 5 MONTHS to get my first disability payment after surgery last year. And I was W2 with everything perfect!!! Can't imagine how complicated 1099 stuff must be.

My situation was slightly different but might help you. I had both W2 and 1099 income simultaneously for years. I paid into SDI through my W2 job, then when I needed disability leave, they calculated my benefit using BOTH income sources even though I only paid SDI tax on the W2 portion. The key difference in your case is that you'd need the Elective Coverage program since you won't have any W2 income contributing to SDI automatically. Be very careful about that waiting period others mentioned. It's strictly enforced - I know someone who tried to claim after only 5 months enrollment and was denied despite having an emergency situation.

Has anyone looked into private disability insurance instead of EDD? I switched to that when I became self-employed because the waiting periods were shorter and the coverage was better. Costs more but worth it in my case.

wait so does this elective coverage thing cover pregnancy too??? might want another baby next year and wondering if i can get paid leave if im doing gig work

Just wanted to share my recent experience with the DE 1378N application process since you're looking to get this sorted ASAP. I submitted my application in January and it took exactly 18 days to get approved, so the 2-3 week timeframe mentioned earlier is pretty accurate. A few practical tips that helped me: - Make sure you have your Social Security earnings record handy when filling out the form (you can get this from ssa.gov) - The "assumed income" amount has a minimum based on your previous earnings history, so you can't just pick any low number to reduce contributions - I set up automatic quarterly payments through EDD's online portal to avoid missing deadlines - Keep detailed records of all your 1099 income since you'll need to report it annually One thing that surprised me was that once you're enrolled, you can't easily change your assumed income amount mid-year - you're basically locked in until the next annual enrollment period. So think carefully about what amount you choose initially. Given your timeline and health concerns, I'd strongly recommend applying this week if possible. The 6-month waiting period is non-negotiable, but at least you'll have coverage in place for future issues.

I went through this exact transition about 2 years ago after a workers comp injury. Here's what I wish someone had told me upfront: The DE 1378N form asks for your highest annual earnings in the last 5 years - they use this to set both your minimum and maximum assumed income options. You can't go below about 60% of that highest year, and you can't exceed certain caps (I think it's around $145,000 for 2025). One critical thing nobody mentioned yet: if you're still receiving SDI benefits from your W2 job when you apply for Elective Coverage, there can be some coordination issues. Make sure to mention this on your application because they need to handle the transition properly. Also, the quarterly payment deadlines are STRICT - if you're even a day late, they can cancel your coverage entirely and you'd have to restart the whole 6-month waiting period. I set up calendar reminders for the 15th of January, April, July, and October. The good news is that once you're past the waiting period, the claims process for 1099 folks is actually simpler than W2 employees in some ways because your assumed income amount is already established - no complex wage calculations needed. Given your back surgery history, definitely get this application in ASAP. Even if you need private disability insurance to bridge the gap, having the Elective Coverage as a backup is worth it for the cost.

I've been through this exact transition and want to add a few important points that might help with your timeline concerns: Since you mentioned you might need medical leave within the next year, consider this strategic approach: Apply for Elective Coverage immediately (like this week), but also look into short-term private disability insurance as a bridge until your 6-month waiting period is up. Some private policies can start coverage in 30-60 days with less strict underwriting if you're currently healthy enough to return to work. Also, regarding your current SDI claim - make sure it's completely closed out before your Elective Coverage starts. I learned the hard way that having any overlap can create administrative headaches that delay everything. One more tip: when you're filling out the assumed income amount, consider your potential healthcare analytics income realistically but don't lowball it. Your benefit amount is based on this number, so if you do need to claim later, you'll want adequate coverage. The contribution rate is only 1.1%, so the difference between choosing $50K vs $60K assumed income is pretty minimal monthly but makes a bigger difference in benefits. Document everything and keep copies of all submissions. EDD processes can be slow, and having your paperwork organized will save you time if there are any issues. Good luck with the transition!

I just want to echo what everyone else has said about applying ASAP - that 6-month waiting period is really the key factor here. I made the W2 to 1099 transition last year (different industry but similar situation) and the Elective Coverage has been a lifesaver. One thing I'll add that I don't think anyone mentioned: make sure you understand the difference between "disability" and "unable to perform your regular work" when it comes to claims. As a 1099 contractor, your "regular work" definition can be trickier than it is for W2 employees, especially if you're doing varied types of healthcare analytics work. The EDD will look at whether you can perform the substantial duties of your work, so keep good records of exactly what your contractor role entails. This becomes important if you ever need to file a claim - they'll want to know specifically what tasks you can't perform due to your disability. Also, since you mentioned back surgery with potential future issues, consider asking your doctor for documentation about any work restrictions or accommodations you might need. Having that medical paper trail established before you need it can speed up the claims process significantly. The application really isn't too bad once you gather all the required info. Just take your time with the assumed income calculation and err on the side of realistic rather than conservative. Good luck!