California State Vs. Federal Disability

The inability to work, either short or long-term, can create significant financial hardship for disabled workers and their families. Luckily, in the state of California, there are two different programs that can work as financial safety nets if your diagnosis makes it difficult to maintain employment.

The first is the Social Security Disability Insurance, or SSDI, program administered by the federal government. The second is the California State Disability Insurance, or SDI, program provided by the state for Eligible California workers.

But which one is right for your unique situation? Let’s discuss the differences between the two programs and when to apply for each.

Social Security Disability Insurance (SSDI)

Social Security Disability Insurance is a payroll tax-funded federal insurance program of the United States government. It is managed by the Social Security Administration and designed to provide income supplements to people who are physically restricted in their ability to be employed because of a notable disability.

How to Qualify

To qualify for SSDI, you must:

  • Prove to the Social Security Administration that you have a disability that may last for at least one year,

  • Show that you’ve been working for a number of years,

  • And prove that you’re no longer earning income above a certain threshold because of your disability.

Benefits

Because SSDI has a five-month waiting period, you will have to wait a minimum of five months before receiving benefit checks. However, most cases are not approved right away and it's more likely you will wait 1-2 years for approval. When you finally get approved, you begin receiving a disability benefit check each month, and may be eligible for disability back pay if you begin receiving checks later than 5 months after filing. If your household income is over a certain amount, you will have to pay taxes on your disability benefits.

Concerns

SSDI is notoriously difficult to qualify for. According to the federal government’s own statistics, only about one-third of applicants are approved, and most require at least one level of appeal before being approved. In addition, benefit amounts are calculated by the number of years you had been working before becoming disabled. This means that younger disabled people may be offered lower benefits than older applicants. Still, SSDI may be the only way for workers to continue putting food on the table after a disability.

California State Disability Insurance (SDI)

California State Disability Insurance (SDI) is a partial wage-replacement insurance plan for eligible California workers. The SDI program is state-mandated and funded through employee payroll deductions. Workers covered by SDI have two benefits available to them: Disability Insurance (DI) and Paid Family Leave (PFL). More than 18 million California workers are covered by the SDI program.

How to Qualify

Workers who lose wages when they are unable to work due to a non-work-related illness or injury, pregnancy, or childbirth, may be eligible for State Disability benefits. In order to be eligible for benefits, you must:

  • Be unable to work for at least eight days,

  • Have been either employed or actively looking for work at the time you became disabled,

  • Have lost wages because of your disability,

  • And have earned at least $300 from which State Disability Insurance (SDI) deductions were withheld.

Benefits

SDI benefits are paid weekly upon approval. Your weekly benefit amount (WBA) is about 60-70% of wages earned 5 to 18 months before your claim start date, up to the maximum weekly benefit amount. You may collect weekly benefits for up to 52 weeks (one year). This amount is not subject to tax, so no withholding will be taken from the payment.

Concerns

While it’s much easier to qualify for SDI, there are some concerns for disabled workers. The biggest being that SDI can only be used for short-term disabilities. Also, some common concerns do not appear on the list of approved disabilities, and require a more in-depth process to be approved for benefits. In addition, beneficiaries can lose their coverage by missing a doctor’s appointment that was set up by the program.

So Which is Right for Me?

The most important determining factor for deciding which disability benefits to apply for is how long your disability will prevent you from working.

One year, or less - Apply for California State Disability Insurance (SDI)

More than one year - Apply for Social Security Disability Insurance (SSDI) AND California State Disability Insurance (SDI)

Because of the long waiting period (minimum of 5 months) associated with SSDI approval, you should also apply for SDI to reduce your financial hardship while waiting for your SSDI case to be approved.

When to Contact a Disability Attorney

There is no need to hire a disability attorney prior to filing either an SSDI or SDI case. If your case is denied, then you should consider having an attorney on your side - especially for an SSDI case. An experienced disability attorney can help with the appeals process and improve your chances of a favorable outcome.

Cole, Fisher, Cole, O’Keefe + Mahoney is Central California’s leading workers’ compensation and social security disability law firm. With over 30 years of successful experience, we are committed to securing maximum benefits for our clients in the Fresno, California area. Schedule a free consultation today.

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