Who pays unemployment tax in California? EDD employer vs employee breakdown

Oh wow okay that makes way more sense now. So the SDI deduction I see is totally different from unemployment? I always assumed they were related.

Exactly right - SDI and UI are separate programs even though California EDD administers both. SDI covers you if you can't work due to illness/disability or bonding with a new baby. UI covers you when you lose your job through no fault of your own. Different funding, different eligibility rules, different benefit amounts.

this is actually super helpful i never knew my boss was paying that whole time lol

Wait so if I was making good money does that hurt my benefit amount? I was earning around $85k before the layoff.

Your weekly benefit amount (WBA) is calculated from your highest earning quarter in your base period, not the $7k wage base. The max weekly benefit in California right now is around $450. So yes higher earners often notice the cap. But 6 years of consistent employment is a strong claim - you should be fine getting approved.

same boat here, made decent money and was kind of shocked at how low the weekly amount was when i finally got approved

I might need this when I actually start the claim process. Did the agent seem knowledgeable? I have some specific questions about my base period since I took unpaid leave for a few months.

Yeah the agent was really helpful. Unpaid leave can definitely affect your base period calculation so you'd probably want to ask specifically whether you qualify for an alternate base period. Definitely worth a call.

ugh i tried calling EDD like 15 times last week and gave up every time. going to check out that Claimyr thing

does claimyr actually work or is it a scam asking for real

Your brother is technically correct that a handful of states do have small employee contributions to unemployment funds. BUT California is not one of them. In California the UI tax is 100% employer-paid. The only employee payroll deduction in CA that goes to EDD is the SDI contribution I mentioned earlier. So for purposes of your California EDD claim, no - you never paid UI taxes directly.

ohh ok got it thanks. so my coworker who told me i was paying in was wrong

California definitely employer pays. I worked HR for years and we handled this every quarter. Zero employee contribution to UI here.

Thank you for saying this actually. I was feeling a little weird about it for some reason.

So many people feel that way! Especially long-term employees. You earned it by showing up for 6 years. File with confidence.

needed to hear this too honestly. filing next week and already overthinking everything

I had no idea there was a federal layer too. So my employer was paying both CA and federal unemployment tax on my wages this whole time?

Correct. Both SUI to California EDD and FUTA to the IRS. Both 100% employer obligations, nothing deducted from your paycheck.

this thread is actually really educational i learned a lot

Oh no! Can you actually get backdated benefits if you file late?

you can request backdating but EDD doesn't always approve it and you have to have a good reason. definitely easier to just file right away. i did get some of it back but not all of it was annoying

This is really important advice. California EDD does allow backdating requests but they're not automatic and the process is a pain. File the day you lose your job if possible.

This breakdown is so helpful! So the SDI on my stub is EDD but for something totally different. Got it.

Exactly. And when you file for unemployment you'll create a myEDD account and your claim will be completely separate from any SDI claim you might have. Different programs, different claim numbers, different certification processes.

wait does SDI affect unemployment? asking because i took SDI leave before my layoff

If you were on SDI right before the layoff there can be some interaction but generally you'd file UI after SDI ends. Might be worth a call to EDD to clarify your specific situation since the timing matters.

Employers CANNOT determine your eligibility for unemployment. That's 100% California EDD's decision. Some employers try to discourage claims because their experience rating (and therefore their UI tax rate) goes up when former employees file successfully. Don't let them intimidate you.

Wish I had known that earlier. EDD was actually really clear once I got through to them.

This is a really important point. Filing for unemployment is your legal right. Employer interference or intimidation is not okay. EDD makes all eligibility determinations, period.

Yes it was a straight layoff - whole department eliminated. Should I still be worried about the employer contesting it?

With a department-wide elimination it's pretty hard for an employer to contest successfully since there's no misconduct or voluntary quit angle. You should be fine. Just be consistent and accurate in how you describe the separation on your claim.

my employer contested my claim even though i was clearly laid off and it added like 3 weeks to my adjudication period. so annoying

ok i looked at the video and i think i get it now. might try this because i literally cannot get through to EDD on my own

I tried it after seeing it mentioned earlier in this thread - got connected to an EDD agent this morning. Actual helpful person who answered all my questions. 10/10 would recommend

Three job search contacts per week - is that tracked anywhere or just honor system?

EDD can and does audit job search activities. You should maintain a log with dates, company names, contact methods, and position titles. If you get selected for an audit and can't produce records you could face a disqualification or overpayment issue. Keep good records from day one.

Noted. Starting a spreadsheet right now. Thank you!

the job search log thing is real - i got audited and was so glad i had kept track of everything. saved my claim for sure

They can file a protest if they believe your separation doesn't qualify for benefits (like if they claim you quit or were fired for misconduct). But they can't just 'cancel' your claim. EDD reviews both sides and makes the determination. If they file a protest your claim goes to adjudication which delays payment but doesn't automatically deny you.

ok so they have some power but EDD still decides. good to know

yeah my former employer protested and it was stressful but EDD sided with me after reviewing everything. just have your documentation ready

This explains SO much about my former employer's attitude when I filed. Now it all makes sense.

Exactly right. The experience rating system is meant to encourage employers to maintain stable employment, but in practice it sometimes creates this adversarial dynamic with former employees. Don't let it stop you from filing a legitimate claim.

Not a dumb question at all! Yes, unemployment benefits ARE taxable income at the federal level. You'll receive a 1099-G form from California EDD showing your total benefits received. California state tax is a different story - CA does NOT tax unemployment benefits at the state level. So you'll owe federal income tax on your benefits but not CA state income tax. You can choose to have 10% withheld from your weekly payments for federal taxes or you can pay quarterly estimates or settle up at tax time.

whoa i didn't know california doesn't tax it. that's actually nice. will definitely set aside money for federal though

yeah the 1099-G thing surprised me my first time on unemployment. definitely set aside something for april

This is really reassuring coming from someone who works in HR. Thank you. I'm going to file tomorrow.

Good luck! If your claim goes to adjudication for any reason don't panic - it's sometimes random and doesn't mean you're being denied. Just respond to any EDD requests promptly.

random adjudication is definitely a thing. happened to me for no obvious reason. just respond to everything they send and it usually resolves

Good tip on the legal name. I almost used my nickname.

yeah it's surprisingly easy to get tripped up on that. exact legal name, real SSN, correct address. triple check before you submit

Also make sure your bank account information is entered correctly for the debit card vs direct deposit option. Direct deposit hits faster than the EDD debit card in my experience.

This is so helpful, thank you for the update! Going to try this after I file so I can get my base period confirmed too.

ok this convinced me. trying claimyr tomorrow for my own claim question

Good luck to both of you! The EDD agent was actually really helpful once I got through. That's the frustrating part - the info exists but getting to a human who can give you your specific answers is the hard part.

This is exactly my worry - I have some specific circumstances that the general FAQs don't address. Good to hear it usually turns out to be less scary than expected.

almost always less scary. EDD FAQ pages are actually pretty good for common questions. And if you have to call, early tuesday or wednesday mornings seem to have shorter waits in my experience

Reporting partial earnings correctly is so important. Always report what you earned (not what you were paid) during the week you did the work. Underreporting can lead to overpayment notices that are a nightmare to resolve later.

That's the correct answer - SDI and UI are sequential in that situation, not concurrent. Glad you got confirmation directly from EDD.

yeah i was worried there would be some overlap issue but it's actually designed to work that way