Who pays unemployment compensation in California EDD - is it taken from my paycheck?

Wait so the CASDI deduction isn't for unemployment at all? That actually clears up so much. I kept thinking I was paying into it somehow.

Exactly right. Two completely different buckets - CASDI goes to the disability and family leave programs, while UI taxes come entirely from employers. Nothing from your wages covers unemployment.

DE 429Z was the first real piece of mail I got from EDD after filing and it lays out the weekly amount and benefit year. Worth knowing that document is coming so you don't throw it out thinking it's junk mail.

That makes the whole thing feel different honestly. I kept feeling slightly guilty like I was taking something I hadn't earned, but if employers pay in specifically for situations like mine...

You absolutely earned it in the sense that your employer was paying into the system the whole time you worked there. That's literally what the tax is for.

my manager tried to tell me once that i was costing the company extra by filing. i didn't know enough to push back but sounds like they were paying into it anyway regardless??

Filing a claim does affect an employer's reserve account and can influence their future UI tax rate - that's a real thing. But whether you file or not doesn't change whether they pay into the system. They're in it either way.

The 'For Your Benefit' booklet EDD mails covers this but let's be real, most people don't read a booklet when they're stressed about losing their job.

Exactly. And the EDD site has the info but you have to know what to look for. I went in circles for days.

Same situation here last spring. Filed the claim, got the DE 429Z, and even then I didn't fully understand the funding until I found threads like this one.

So could I technically claim both SDI and UI at the same time if something came up? Like if I got sick during my unemployment period?

EDD's own rule is you can't collect both programs for the same days. If you became unable to work, you'd stop certifying for UI and file for Disability Insurance instead - since unemployment requires you to be able and available for work every week you certify. You can file for both but only get paid by one at a time.

That able-and-available rule tripped me up. I had a medical thing come up during my claim and had no idea I needed to switch to DI. Ended up with a gap in my payments figuring it out.

huh didn't know nonprofits had a different option. does that mean they can like refuse to pay if someone files against them

No, they still owe the money - it's just paid as reimbursement after the fact instead of as a tax upfront. EDD collects it either way. And an employer can't deny a claim regardless - EDD makes eligibility decisions, not the employer.

The employer gets notified when you file (there's a notice EDD mails them called the DE 1101CZ) and they can respond with info about why you left, but EDD is the one who decides whether you qualify.

Mine is just a regular private sector layoff so sounds like the standard process applies. Good to know that distinction exists though.

I had a mix of federal and private sector work in my base period and had to call EDD to sort out how that counted. It's not straightforward when you have multiple types of employment.

That's a little nerve-wracking to hear. Can my employer actually block my claim?

Employers can provide information and they can appeal, but they cannot deny your claim. EDD makes the call. For a straight layoff there's usually not much to dispute - you were laid off through no fault of your own, which is the standard for eligibility.

My layoff was part of a big reduction in force and my old company didn't even respond to EDD within the 10 days. Claim went through fine.

Really common misconception. Regular income tax is separate. UI is specifically funded by payroll taxes that only employers pay - FUTA at the federal level and SUI at the state level. Workers contribute nothing to it.

okay that makes way more sense now. so my employer was essentially paying an insurance premium for me this whole time

How do I know what my highest quarter was? Is that something I can calculate myself before the DE 429Z comes?

EDD has an Unemployment Benefit Calculator on their site that gives you an estimate based on what you earned. It's not exact since EDD does their own calculation, but it'll give you a ballpark. The real number comes on the DE 429Z.

My estimate from the calculator was pretty close to what actually came on my DE 429Z. Within like $20 of the official number.

I haven't gotten that notice yet but I'll watch for it. 21 days from the date on the notice, not from when I receive it?

From the date printed on the DE 8405, yes. Mail delivery eats into that window so better to register early once you get it rather than waiting.

I registered on CalJOBS the day I got the notice and uploaded a basic resume. Took maybe 20 minutes. Don't overthink it.

The CalJOBS site is a little clunky but it does work. Just make sure your resume is actually posted and visible or it might not count.

$450 is the max? I was hoping it might be more. That's going to be tough if rent is due.

It's a real gap for higher earners. CalFresh might help on the food side - unemployment benefits count as income to establish eligibility so you can apply even while collecting UI. BenefitsCal is where you apply for that and Medi-Cal.

211 is also worth calling - they can point you to local resources based on your specific county. Got through a rough month that way.

Benefits paid out can affect an employer's future UI tax rate through their reserve account - that part is true. But that's the system working as designed. Employers pay into the fund knowing that layoffs will happen and former employees will file. Filing when you're genuinely laid off is exactly what the program exists for.

And withholding a valid claim to protect your former employer's tax rate is not something EDD would ever suggest. File if you qualify.

okay yeah that makes sense. the system is built for exactly this situation

I was told my layoff was straightforward so hopefully no interview needed. But good to know what that document is if it shows up.

If your separation was a clean layoff with no complications you may never see a DE 4800. But if anything is unclear EDD will schedule one, and missing it without contacting EDD the same day can cause delays or denial.

My interview was totally fine - they just confirmed the layoff date and asked a few questions about my last day. Done in maybe 10 minutes. The notice made it sound scarier than it was.

My biggest earnings were in the last quarter so I might be in that situation. Is there anything I can do about it?

Not really - it's how the base period calculation works, not an error. The alternate base period catches people who don't have enough wages in the standard period, not people who want a higher weekly amount. If you have at least $1,300 in one quarter of your standard base period you should have a valid claim; the amount comes from your highest quarter within it.

Same situation with my recent raise. It stings but the alternate base period isn't a workaround for the cap or the wage calculation - it's specifically for people who barely miss having a valid claim at all.

Money Network card - is that mailed to me automatically or do I have to request it?

EDD sends the Money Network card automatically once your claim is set up. If you'd rather have direct deposit you can change the payment method in myEDD. The card just shows up by mail so watch for it.

Keep certifying even if weeks show as Pending in Claim History. If something gets resolved later, EDD can only pay weeks that were certified. Missing a certification means missing that payment permanently.

I'm not planning to work while on UI but good to know in case something short-term comes up.

Freelance, gig work, any self-employment counts too. Report it all when you certify and EDD does the math. Trying to calculate it yourself and only report the 'adjusted' amount is where people get into trouble.

Severance also goes on the report-it list even though EDD's rules say it doesn't count as wages for UI purposes. Report it as the certification asks and let EDD decide how it affects things. The agent I spoke with about my severance situation walked me through what my own claim showed in the system and said the determination would come in the mail.

California doesn't tax unemployment benefits? I didn't know that. Does that affect how I should think about withholding?

State taxes are zero on UI in California, so the only withholding that matters is federal. The 10 percent option at each certification is the choice EDD gives you. Whether that's enough depends on your overall tax situation for the year.

If you have other income in the year from before your layoff, the UI benefits stack on top of that for federal purposes. Some people end up needing to set aside a bit extra beyond the 10 percent withholding, especially if they had a decent salary earlier in the year.

Hopefully I won't need any of that for a clean layoff but it's good to know the form names. DE 1000M.

For a straight layoff with a full work history it's usually smooth. The appeal process exists mostly for contested separations - quits, firings, or cases where there's a question about why someone stopped working.

DE 1080CZ is also the notice that comes if EDD finds an overpayment, not just for initial denials. Same 30-day window applies. Keep anything EDD mails you for at least a year, those form numbers matter.

I did the ID.me verification when I applied - is there anything that can still trigger an identity hold even after doing that?

Apparently sometimes the ID.me confirmation doesn't sync to EDD's side right away or there's an issue with the photo. The chat agent told me to allow a day and then check again in UI Online. It cleared within 24 hours.

ID.me issues are really common from what I've seen on this forum. If the pending weeks don't clear within a few days of completing ID.me, the phone line at 1-800-300-5616 (8 a.m. to 5 p.m. weekdays) or the live chat are the fastest ways to get a human to look at the account.

How long did the whole thing take once you filed alongside the severance situation?

DE 429Z came in about 12 days. First payment hit the Money Network card roughly three weeks after I filed, covering the waiting week certification and one paid week. The severance didn't delay anything as far as I could tell.

EDD's own guidance says severance paid under a company plan doesn't count as wages for UI, but you still report it on the certification and EDD makes the call. What happened on this person's claim tracks with how it usually goes for a standard company severance payout.

I hadn't thought about CalFresh being an option while on unemployment. Is there any reason filing for it would affect my UI claim?

No connection between the two programs from EDD's side. CalFresh is county-administered. Having an active UI claim actually makes it easier to show income for CalFresh purposes since there's a clear payment record.

Covered California for health insurance is another one on EDD's resource list if your employer coverage ends with the job. A job loss counts as a qualifying life event so you can enroll outside the standard open enrollment window.

Are there certain times of day when the EDD phone line is easier to reach?

Earlier in the morning tends to be a little better from what I've heard, though it varies. 8 a.m. right when they open is worth trying.

Avoid Mondays if possible - highest volume day. Mid-week mornings have been slightly more reliable from my experience.

Mine was all California work so the online filing should be fine. But that's a good thing to know if anything had been different.

Had a brief stint in another state two years ago and panicked thinking I needed a combined claim. EDD's timeframe only looks back 18 months from when you file, so older work outside California may not even fall in your base period. Check the dates before assuming.

Good point - if the out-of-state work is older than 18 months it's outside the window entirely and you just file a regular California claim online.