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StarStrider

Employer 'topping off' EDD benefits - will this mess up my PFL claim after disability?

I'm currently on SDI for recovery after having my baby (6 weeks now), and I'll be transitioning to PFL for baby bonding soon. My employer has this benefit where they'll 'top off' my state benefits to reach 100% of my salary - so if EDD pays 60%, my company will cover the other 40%. My concern is: will receiving these supplemental payments from my employer mess up my PFL claim? Will EDD think I'm working and reduce my benefits? To complicate things, HR accidentally processed my full regular paycheck during my first pay period on disability (they forgot I was out). I'm worried this might look like I was working while claiming disability benefits. I've tried calling EDD multiple times to ask about this but can't get through to anyone. Has anyone dealt with employer supplemental pay during maternity leave/baby bonding? Will I need to report these 'top off' payments when I certify for PFL? I'm scared of getting hit with an overpayment notice later!

Zara Malik

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You should be fine! My company does something similar. The key is that these are *supplemental disability benefits* from your employer, NOT wages. When you certify for PFL, there's a question about whether you received other benefits - that's where you report these payments. But they don't count as wages so they won't reduce your state benefit. About the full paycheck mistake - call your HR department ASAP and ask them to fix it in their system. They need to code it properly as paid leave rather than regular wages. This is important for their records and in case EDD ever audits your claim.

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StarStrider

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Thank you! That's a huge relief. Do you know which specific question on the PFL certification form asks about supplemental benefits? I want to make sure I fill it out correctly.

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Luca Marino

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I work in HR and handle leaves regularly. Your employer should be issuing these supplemental payments as "paid family leave" or "supplemental disability pay" - NOT as regular wages. It's important that your paystubs reflect this correctly. The key thing EDD cares about is whether you're WORKING while collecting benefits. You're not working, you're on protected leave and receiving supplemental pay that your employer offers as a benefit. For the accidental full paycheck, have your HR department correct this immediately and reissue the corrected paystub. They should mark it as supplemental disability pay rather than regular wages. Keep records of all communications about this correction.

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StarStrider

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This is super helpful, thank you! I'll check my paystubs to see how they're coding these payments and talk to HR about making sure they're labeled correctly.

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Nia Davis

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OMG I had this EXACT situation last yr with my company!!! They paid me my full salary for like 3 weeks b4 realizing I was on SDI. They fixed it by calling it "paid family leave supplemental" on my next paystubs. EDD never even questioned it! BTW when u transition from disability to PFL make sure u file the PFL claim BEFORE ur disability ends!!! Dont wait til the last minute or there will be a gap. I know ur stressed but youll be ok!!!

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StarStrider

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Thanks for the advice! I'm actually really worried about that transition from SDI to PFL. How many days before my disability ended did you apply for PFL? I've heard different recommendations.

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Mateo Perez

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I don't think ur situation is as simple as others are making it sound. I got MAJORLY screwed by EDD last year during my leave. They said I was working while collecting benefits and sent me an overpayment notice for $4800!!!! Took months to fix and I had to send in tons of paperwork proving I wasn't actually working. Your employer should NOT be sending you regular paychecks during leave. Period. Get this fixed NOW and get something in writing from HR explaining the mistake.

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StarStrider

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Oh no, that sounds awful! Did you eventually get it resolved without having to pay back the money? I'm definitely going to contact HR tomorrow and get this sorted out. I'm worried because I'm about to transition from SDI to PFL and don't want to start the PFL claim with problems.

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Aisha Rahman

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I've gone through this process twice now with my employer's supplemental pay policy. Here's what you need to know: 1. For correct reporting on your PFL certification, these payments should be reported as "other benefits" not as wages 2. Make sure payroll codes these correctly - should be something like "LOA supplemental pay" not regular wages 3. For the accidental full paycheck, have HR send you an email confirming this was a mistake and they've recoded it properly 4. When you transition from SDI to PFL, apply for PFL about 5-7 days before your SDI ends 5. Keep records of EVERYTHING - screenshots of your online claim status, copies of all communications with HR, and your paystubs One last thing - trying to reach EDD directly is nearly impossible these days. I spent hours on hold and kept getting disconnected. I finally used Claimyr (claimyr.com) to connect with an agent. They have a service that basically waits on hold for you and calls when an agent is available. Saved me so much stress! They have a video demo here: https://youtu.be/DOLxZQb92wM?si=6N1iCQ3a8Cdb2Ay5

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I second this! Claimyr saved my sanity when I needed to sort out my transition from disability to PFL. Spent 3 days trying to get through to EDD before I found them.

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Ethan Brown

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Sorry but now im confused about something else... does the company suplementary pay effect the amount of taxes you pay on PFL benefits? My HR dept told me that we have to pay taxes on the state portion of the benefits at the end of the year and im already stressed about a surprise tax bill... does anyone know if thats true?

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Luca Marino

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Great question - SDI benefits (disability) are NOT taxable for California state income tax but ARE taxable for federal income tax. PFL benefits (baby bonding) ARE taxable for both state and federal. Employer supplemental pay is typically taxed normally like regular income for both state and federal. You should receive a W-2 from your employer showing the supplemental pay. EDD will send you a Form 1099-G for the state benefits you received. Some employers withhold taxes from the supplemental payments and some don't - you should check with your HR department about their specific policy.

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StarStrider

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Update: I spoke with my HR department this morning. They're going to recode the accidental full paycheck as 'supplemental disability pay' and send me documentation confirming this was an administrative error. They also explained that all future top-off payments during my leave will be coded as supplemental disability/PFL pay, not regular wages. I'm still concerned about the transition from SDI to PFL though. My disability claim ends in about 10 days, and I'm planning to file for PFL this weekend. Does that timing sound right? And should I mention the payroll issue when I file for PFL?

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Aisha Rahman

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That timing sounds perfect - filing 5-7 days before your SDI ends is ideal. There's no need to proactively mention the payroll issue when filing for PFL unless there's a specific question about it (there usually isn't). You've taken all the right steps by having HR fix the coding issue. Make sure to select "bonding with new child" as your reason for PFL, and have your child's birth certificate or hospital documentation ready - you'll need to provide this information during the application process. The system should recognize you're transitioning from SDI and pre-fill some information, but verify everything carefully before submitting.

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I went through this exact situation 8 months ago! My employer also tops off benefits to 100% salary, and I was terrified about messing up my claims. Here's what I learned: The supplemental pay from your employer is totally fine as long as it's coded correctly on your paystubs. When you certify for PFL benefits, there's a question that asks something like "Did you receive any other benefits or payments?" - that's where you report the employer supplemental pay amount. But since it's NOT wages for work performed, it won't reduce your state benefits. For your transition timing, definitely file your PFL claim this weekend if your SDI ends in 10 days. I filed mine about a week before my disability ended and had zero gap in benefits. The system is pretty smooth about transitioning from one claim to the other. One tip that really helped me: when you file for PFL, take screenshots of every page of your application and save confirmation emails. EDD's system can be glitchy and it's good to have records of what you submitted and when. Also, don't stress too much about the payroll error - you've handled it perfectly by getting HR to fix the coding and document it. EDD deals with employer mistakes all the time. The important thing is that it's corrected in their system now. You're doing everything right! The whole process is nerve-wracking but you'll get through it fine.

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