The Employment Development Department, known as EDD, is the California state agency that pays unemployment benefits, disability insurance, and paid family leave to workers, runs the state’s job search services, and collects payroll taxes from employers.1CA.gov. Employment Development Department (EDD) It sits under the Labor and Workforce Development Agency and reaches almost every working Californian at some point, whether you file a claim after a layoff, take leave for a new baby, or see SDI withheld from your paycheck.2Employment Development Department. About the EDD
Four programs do most of EDD’s work: Unemployment Insurance, State Disability Insurance (which includes Paid Family Leave), workforce and job-training services, and payroll tax administration. Each one has its own rules, funding source, and benefit formula.
Unemployment Insurance
Unemployment Insurance (UI) pays weekly cash benefits to workers who lose their jobs through no fault of their own. Employers fund the program through payroll taxes; nothing comes out of your paycheck for it.3Employment Development Department. California State Payroll Taxes – Overview
Eligibility depends on how much you earned during a 12-month “base period” before you file. You need at least $1,300 in your highest-earning quarter, or at least $900 in your highest quarter with total base-period earnings of at least 1.25 times that amount.4Employment Development Department. How Unemployment Insurance Benefits Are Computed Weekly payments range from $40 to $450 depending on your prior wages, and a regular claim lasts up to 26 weeks.5Employment Development Department. Calculator – Unemployment Benefits While you collect, you must remain able to work, available for work, and actively looking. Miss any of those in a given week and you can lose that week’s benefit.
You file through EDD’s myEDD portal online, or by phone, fax, or mail. Phone lines run Monday through Friday, 8 a.m. to 5 p.m. Pacific, with staff available in Spanish, Armenian, Cantonese, Korean, Mandarin, Tagalog, and Vietnamese, plus free interpreters for other languages.6Employment Development Department. Step 2: Apply Once approved, you certify every two weeks that you’re still unemployed and job hunting, and payments go to an EDD debit card or your bank account by direct deposit.
Disability Insurance and Paid Family Leave
State Disability Insurance (SDI) has two parts. Disability Insurance (DI) replaces part of your wages when a non-work-related illness, injury, or pregnancy keeps you from working. Paid Family Leave (PFL) covers time off to care for a seriously ill family member or to bond with a new child by birth, adoption, or foster placement. Both are funded by employee payroll deductions, not by employers.3Employment Development Department. California State Payroll Taxes – Overview
The weekly benefit for both programs is 70 to 90 percent of your average weekly wages from your highest-earning quarter, capped at $1,765 per week in 2026.7Employment Development Department. Contribution Rates and Benefit Amounts DI claims have a seven-day waiting period, so the first payable day is the eighth day of your claim.8Employment Development Department. Disability Insurance – Benefits and Payments FAQs PFL pays for up to eight weeks within any 12-month period.9Employment Development Department. Paid Family Leave
For 2026, the SDI deduction is 1.3 percent of all wages, with no wage ceiling. SB 951 removed the taxable wage cap in 2024, so the deduction now applies to your entire paycheck no matter how much you earn.7Employment Development Department. Contribution Rates and Benefit Amounts
Job Search and Training Services
EDD runs CalJOBS, an online portal where you can search listings, build a resume, research employers, and get alerts for new openings. Employers post jobs and search for candidates on the same system.10Employment Development Department. CalJOBS Overview
The department also partners with the federal Workforce Innovation and Opportunity Act (WIOA) to fund training for veterans, youth, and workers laid off because of shifts in their industry. Participants can access vocational training, career counseling, and education programs.11U.S. Department of Labor. Workforce Innovation and Opportunity Act EDD publishes labor market data too, including wage trends and occupational projections that businesses and local governments use for planning.
Payroll Taxes EDD Collects
EDD collects four payroll taxes. Employers pay Unemployment Insurance (UI) tax and the Employment Training Tax (ETT). Employees have State Disability Insurance (SDI) and Personal Income Tax (PIT) withheld from their wages.3Employment Development Department. California State Payroll Taxes – Overview The 2026 UI taxable wage limit is $7,000 per employee, so employers pay UI tax only on each worker’s first $7,000 in annual wages.12Employment Development Department. 2026 California Employer’s Guide
EDD auditors also enforce correct worker classification. California uses the ABC test to decide whether a worker is an employee or an independent contractor, and misclassification can trigger back taxes, interest, and penalties for the business.13California Department of Industrial Relations. Independent Contractors
If EDD Denies Your Claim
When EDD denies a UI or disability claim, or you disagree with any determination, you can appeal to the California Unemployment Insurance Appeals Board (CUIAB). You have 30 calendar days from the mailing date on the notice to file. Miss that window and you’ll need to explain the delay before the board decides whether to accept the late appeal.14California Unemployment Insurance Appeals Board. Appeal Process
An Administrative Law Judge then schedules a hearing where you and the employer, if there is one, present testimony and documents. The judge issues a written decision, which you can appeal further to the full CUIAB panel if the ruling goes against you.
Taxes on Your EDD Benefits
Unemployment, disability, and paid family leave benefits are generally taxable as federal income. EDD mails you a Form 1099-G each January showing the total paid to you the previous year, and you report that amount on your federal return.15Internal Revenue Service. Unemployment Compensation
To avoid owing a lump sum at tax time, you can file Form W-4V with EDD to have federal income tax withheld from your payments, or make quarterly estimated payments to the IRS yourself.
Fraud, Overpayments, and Identity Theft Notices
Giving false information to collect benefits, including hiding income or using someone else’s Social Security number, disqualifies you from unemployment and can bring criminal charges. Under the California Unemployment Insurance Code, EDD can add a 30 percent penalty on top of any overpaid amount.16California Legislative Information. California Code UIC – Section 1257
Overpayments aren’t always fraud. If EDD finds it paid you more than you were owed, even by its own mistake, you generally have to repay it. EDD may deduct the balance from future payments or use other collection methods.
If you get an EDD notice about a claim you never filed, someone likely used your identity. The Federal Trade Commission recommends reporting the fraud to your employer, notifying EDD so it can investigate, and filing a report at IdentityTheft.gov for a personalized recovery plan.17Federal Trade Commission. Got a Letter About Unemployment Benefits You Didn’t File? That’s Identity Theft Freezing your credit with the three major bureaus and setting up an IRS Identity Protection PIN are reasonable next steps to block related tax fraud.