Fillable Printable Information Concerning Elective Coverage For State Disability Insurance (Sdi)* Only Under Section 709 Of The California Unemployment Insurance Code (Cuic) (De 1378L)

Information Concerning Elective Coverage For State Disability Insurance (Sdi)* Only Under Section 709 Of The California Unemployment Insurance Code (Cuic) (De 1378L)

DE 1378L Rev. 16 (8-16) (INTERNET)Page 1 of 2 CU

INFORMATION CONCERNING ELECTIVE COVERAGE FOR STATEDISABILITY

INSURANCE(SDI)* ONLY UNDER SECTION 709

OF THE CALIFORNIA UNEMPLOYMENT INSURANCE CODE (CUIC)

Coverage under Section 709 of the CUIC does not make provision for Unemployment Insurance (UI)

benefits.

1.S

UMMARY OF SECTION 709 OF THE CUIC

ection 709 of the CUIC provides that any local public entity located in this state specified in

Section 135 (a) (3) or Indian Tribe specified in Section 135 (a) (6), may elect to become an

employer for SDIpurposes only, with respect to allits employees, including those with civil

service or tenure positions, or appointed positions and may file its written election with the

Director. Elected officials and individuals appointed to fill a vacant elected office until the next

election are not eligible for coverage.

ection 135 (a) (3) states that "public entity" also means the governing board of any school

district, any county board of education, any county superintendent of schools, or anypersonnel

commission of a school district which has a merit system pursuant to any provision of the

Education Code.

2.ELEC

TION FOR COVERAGE UNDER SECTION 709

n election under Section 709 may be made on its own motion by the appropriate governing

board of the entity making the election, or may be made by such governing board pursuant to a

petition signed by a majority of the employees (including those with civil service or tenure

positions, or appointive positions). Coverage must be elected for at least two complete calendar

years. The Director may require from each entity any information or reports necessary to carry

out his duties, and may publish information pursuant to this section in statistical form and may

divulge the name of the entity. Each entity must keep work records as prescribed by the Director.

3.E

XTENT OF COVERAGE

overage may be approved for all present and future employees of the local public entityor

Indian Tribe. All employees are to be covered (including excluded services – Sections629

through 656 of the CUIC) even though they may not mandatorily be covered by UI.

ersons who are not considered to be employees eligible for the coverage under Section709 of

the CUIC are those elected to office of the public entity by popular vote or appointed to fill a

vacant elected office until the next election.

*Includes Paid Family Leave (PFL).

4.ELEC

TION OF COVERAGE

An application for elective coverage is filed by a localpublic entity or Indian TribeonanApplication

for ElectiveCoverage ofState Disability Insurance Only – Local Public Entities and Indian Tribes,

DE1378M, which is furnished by the Employment DevelopmentDepartment(EDD). The electing

entity agrees to remaina covered employer for not less thantwo complete calendar years. Coverage

may be terminated at the end of the two-calendar-year period or at the end of any calendar year

thereafter by giving theEDDwritten notification by January31 of the succeeding year.

5.CO

ST OF COVERAGE

Employee contributions for SDIare required at the rate established for each year up to the

annual taxable wage limit. On or before October31 of each year, the EDDwill notify all

employers of the SDIrate for the following year.

Employee contributions are used exclusively to finance the SDIprogram. Deductions for

employee contributions should be made at the time wages are paid.

6.QUARTERLY REPORTS REQUIRED

Wages are reported on the Quarterly Contribution Return and Report of Wages(Continuation),

DE 9C, that is mailedbytheEDDin advance of the quarterly due date.Contributions are sent

with aPayroll Tax Deposit,DE 88. Instructions for completingthe report and paying the

employee contributions forSDIareprinted on the forms.

7.PO

STING OF NOTICES TO EMPLOYEES

Every employing unit shall post and maintain the printed notice, Notice to Employees Elective

overage Application for State Disability Insurance,DE1375C, of such election or application

on the premises. Individual employees shall be given two reasonable opportunities to file an

objection or to be heard in the matter prior to the Director's approval of election.

8.B

ENEFIT ELIGIBILITY

Eligibility for SDIbenefits is determined by the EDDpursuant to requirements of the CUIC and

authorized regulations. Eligibility is dependent on a number of factors including, but not limite

, the following:

•Proof of the claimant's eligibility.

•Filing of a timely claim for benefits.

•Sufficient wages in the base period.

For additional benefit information and an explanation of base period "wages," se

e the pamphlet

Disability Insurance Provisions,DE 2515.

For additional information, please contact:

Employment Development Department

Analysis Resolution and Correspondence Organization

PO Box 2068

Rancho Cordova, CA 95741-2068

Phone: 888-745-3886

The EDD is an equal opportunity employer/program. Auxiliary aids and services are available

upon request to individuals with disabilities. Requests for services, aids, and/or alternate formats

need to be made by calling 888-745-3886 (voice) or TTY 800-547-9565.

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