As an employer, you have obligations and insurance requirements to meet especially if you have employees.  By law, if you operate within the boundaries of the State of California, you have to pay for specific types of insurance including unemployment insurance, workers’ compensation (Worker’s Comp) insurance and disability insurance.

Unemployment Insurance is a state and federal program that offers cash benefits to eligible employees. Although different states have different and separate unemployment insurance programs, all states must follow the same guidelines as set by federal law. Unemployment insurance benefits are set with the goal to offer temporary financial help to unemployed workers who were terminated although they did not commit fault on their own. Benefits are usually based on a percentage of the employees’ earning over a 52-week period. Keep in mind though that benefits are subject to federal and CA State income taxes.

Worker’s Compensation Insurance is usually offered through a commercial carrier or through the CA Workers’ Compensation insurance program. Based on the State of California Division of Workers’ Compensation (DWC), there are “23 district offices and satellites located around the state, sometimes called WCABs, employers, injured workers and others receive judicial services to assist in the prompt and fair resolution of disputes that sometimes arise from workers’ compensation claims. Local district offices are a major part of the workers’ compensation court system, where judges make decisions about cases.

Most offices have information and assistance (I&A) officers on staff, who provide a variety of services to injured workers, employers and others. A primary duty of I&A officers is to help injured workers who don’t have attorneys navigate the workers’ compensation system.” Click HERE to learn more.

Disability Insurance is required by the State of California as well where as an employer, you need to provide partial wage replacement insurance coverage to your eligible employees for non-work related sickness or injury.  In California, and based on the Employment Development Department, “California State Disability Insurance (SDI) is a partial wage-replacement insurance plan for California workers. The SDI program is state-mandated and funded through employee payroll deductions. SDI provides affordable, short-term benefits to eligible workers. Workers covered by SDI are covered by two benefits: Disability Insurance (DI) and Paid Family Leave (PFL).” Click HERE to read more.