For Department Use Only
DIEC
Approved:
Send Forms
DE 2515, DE 3816DI
Date Forms Sent: Approved By:
Rev/Reg By:
Approval Date:
Rev/Reg Date:
DE 3DI Qtr(s)
Effective Date:
Subject
Quarter
DIEC
Account #708(b) 708.5
Complete this application only if you meet the requirements as set
forth in the attached Information Concerning Elective Coverage
NOTE: For assistance in completing this application, contact
the nearest Employment Tax Ofce or call 888-745-3886.
Upon completion of this application, return to:
Attention: Analysis Resolution and Correspondence Organization
Employment Development Department
PO Box 2068
Rancho Cordova, CA 95741-2068
Please type or print all information clearly.
1. Social Security Number* 2. Employer Account Number
5. First Name Middle Initial Last Name
7. Mailing Address: Number and Street or PO Box
8. Business Name: (If Any) Business Phone
9. Business Address: Number and Street or PO Box
10. Email Address:
12. Do you have any employees?
13. Type of Organization:
15. Nature of Business:
16. Your Occupation/Title
If no, explain.
Is a license or permit required in your trade, business, or occupation?
If yes, indicate type of license or permit required:
18.
Are you conducting a seasonal type of business?
If yes, do not submit. You are not eligible for this coverage. See information sheet attached.
19.
Do you perform services in your trade, business, or occupation continuously throughout the year?
(include time spent doing ofce work, soliciting customers, and maintaining machinery and
equipment.)
21.
17. Describe the Type of Service, Type of Contracting, or Product Sold.
20. Do you expect to remain in business for the next eight (8) calendar quarters?
Do you possess such a valid and active
license?
If no, do not submit. You are not eligible for this coverage.
See information sheet attached.
Provide License/Permit Number
14. Name(s) and Title of All Partners and Members (continue on another page if necessary)
General Partners/Members
Social Security Number* Limited Partners/Managing Members Social Security Number*
If yes, and you are not registered with the Employment Development Department (EDD) as an employer, please explain:
Corporation - Do not submit, corporate ofcers are employees and covered under the State Disability Insurance Program.
General Partnership (includes husband and wife co-owners who are both active in the operation and management of the business).
Individual
Limited Liability Partnership – only general partners may apply
Limited Liability Company – Partnership
Limited Liability Company – Sole Proprietorship Managing Member
Limited Partnership - only general partner may apply
11. Website:
ZIP Code
ZIP Code
City
City
3. Gender
6. Have you applied for elective coverage
before?
If yes,
Mo. Yr.
Yes
Yes
Yes
Yes
YES
Yes
DE 1378DI Rev. 44 (11-16)
*The disclosure of your Social Security number is mandatory under the Federal Tax Reform Act of 1976.
Yes
Retail Trade
Contracting
Service
Manufacturing
Wholesale Trade
Repairing
Other (describe)
No
No
No
No
NO
No
No
4. Year of Birth
Application For Disability Insurance Elective Coverage (DIEC)
Male Female
29. Do you presently have an illness or disability which prevents you from currently performing all your regular and customary services in connection with your trade, business, or occupation? (Do not le
application if you are currently disabled.)
30. Have you been disabled or off work to bond with a new child or to
care for a seriously ill family member during the last three months?
If yes, did you le a claim for benets? When did you resume your usual duties?
31. On what date do you wish elective coverage to commence? Keep in mind that the commencement date of an elective coverage agreement shall not be prior to the rst day of the calendar quarter in
which the application is led, nor later than the rst day of the following calendar quarter.
32. Additional Information (Use this space to more fully discuss the above questions)
22. How long have you performed services as a self-employed individual, partner, or member?
23. Do you perform your services under a written contract or agreement?
24. Is the major part of your service(s) performed for any specic rm or individual? If yes, identify the business name and address.
If yes, explain services performed as an employee.
25. Have you previously worked as an employee for a rm for which you are now performing services?
26. If you are self-employed, and also an employee, do you receive the major part of your income from your self-employment?
27. If you were self-employed during the last two years, what was your net prot as shown on your IRS
schedule SE, line 3?
28. Were you convicted of a misdemeanor under the California Unemployment Insurance Code (CUIC) during the last eight (8) calendar quarters? (See attached information sheet)
If you have never led a schedule se with the IRS, did you have net prot in excess of $4,600
last year?
If you have been in business for less than one year, did your average net prot exceed $1,150
per quarter?
If you just started a business, do you expect to earn a net prot of at least $1,150 per quarter
through the end of the year?
Please submit copies of your IRS schedule SE for the last two years. If only in business one year, enter zero for the other year.
If you answered no to all three questions, do not submit this application until you earn the required minimum net prot in your trade, business, or occupation.
If yes, did you le a claim for benets?
If less than 1 year, give date business started
Year(s)
Yes (Please attach copy) or (Explain oral agreement in #32)
No
No
No
No
No
No
No
Yes
Yes
Year YearNet Prot Net Prot
Yes
Yes
Yes
NoYes
NoYes
NoYes NoYes
Yes
Yes If yes, what percentage?
No If no, explain major source of remuneration.
First Day of Current Quarter First Day of Next Quarter
Month(s)
Signature of Applicant
Residence Address (Number and Street or PO Box, City, and ZIP Code)
Application must be signed to be valid.
Date
Residence Phone
.DECLARATION
I, the undersigned, declare that the statements made on this application are true and correct to my best knowledge and belief. I understand that providing false information will
result in denial or termination of coverage. I hereby elect and make application to have my services considered as employment subject to the CUIC for State Disability
Insurance only. I hereby authorize the verication of any information provided by me on this application. I understand that this election must remain in effect for two complete
calendar years unless I no longer meet all of the eligibility requirements of Section 704 of the CUIC or I meet the conditions for termination of coverage under Section 704.1 of
the CUIC.
click to sign
signature
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Information Concerning DIEC* Under Sections 708(b) and 708.5 of the CUIC
Do not send any payment with this application. Contributions are not payable in advance.
You will receive a written notice of the approval or denial of your application.
If your elective coverage agreement is approved, instructions will be sent to you for ling your returns and paying the premiums
due. Your agreement is subject to the requirements and conditions outlined below.
Please retain this page for reference.
Persons Eligible to Elect Coverage
Section 708(b) of the CUIC provides that an individual who is an employer under Section 675 of the CUIC, or two or more
individuals who have so qualied, may elect coverage. Each individual who applies must provide evidence of an annual net
prot of at least $4,600 or average $1,150 per quarter if in business for less than one year.
Section 708.5 of the CUIC provides that self-employed individuals who receive the major portion of their remuneration from
the trade, business, or occupation in which they are self-employed, may elect coverage. Annual net prot must be at least
$4,600 or average $1,150 per quarter if in business for less than one year.
Sole proprietors, general partners, managing members of Limited Liability Companies (LLC) treated as sole-proprietors for
federal income tax purposes, and members of LLCs treated as partnerships for federal income tax reporting purposes are
eligible to apply for coverage. It is not required that all active general partners or members be included in the election. An active
general partnership also includes a husband and wife co-ownership in which both spouses are active in the operation and
management of the business. Limited partners and corporate ofcers are considered to be employees subject to the compulsory
provisions of the CUIC, the same as all other employees, and are not eligible to elect self-coverage.
Conditions for Denial of Coverage
Section 704 of the CUIC provides that an election under Section 708(b) or Section 708.5 of the CUIC shall not be approved if it
is found that any of the following conditions exist:
(a)
The self-employed individual is currently unable to perform his or her regular and customary work due to injury or illness.
(b) The employing unit or self-employed individual is not normally and continuously engaged in a regular trade, business, or
occupation.
(c)
The employing unit or self-employed individual intends to discontinue the regular trade, business, or occupation within
eight calendar quarters.
(d)
The regular trade, business, or occupation of the employing unit or self-employed individual is seasonal in its operations.
(e) The major portion of the self-employed individual’s remuneration is not derived from his or her trade, business, or
occupation.
(f)
The self-employed individual is unable to provide a copy of his or her Internal Revenue Services (IRS) Schedule SE for
the preceding year showing a net prot of at least $4,600 or to certify to an average net prot of at least $1,150 per
quarter since becoming self-employed or for the preceding four quarters, whichever period is less.
(g)
The employing unit or self-employed individual has failed to make a return or to pay contributions within the time required,
pursuant to the CUIC and there is an unpaid amount of contributions owing by the employing unit or self-employed
individual.
(h)
Section 704(h) (1) and (2) of the CUIC: (1) A prior elective coverage agreement entered into pursuant to Section 708 or
708.5 has been terminated by the department under Section 704.1 or by means of a written application for termination as
required by this division, and the individual has not completed a waiting period of 18 consecutive months from the date of
termination. (2) The waiting period for reinstatement to the elective coverage program may be waived for any individual
who becomes eligible for coverage after being terminated under paragraph (1), (2), (4), or (5) of subdivision (a) of
Section 704.1, upon receipt by the department of an application for coverage to be effective the rst day of the quarter in
which the application is received.
(i)
The employing unit or any ofcer or agent of or person having charge of the affairs of the employing unit, or the
self employed individual has been convicted within the preceding eight consecutive calendar quarters of any violation
under Chapter 10 (commencing with Section 2101 of the CUIC). For the purposes of this subdivision, a plea or verdict of
*Includes Paid Family Leave
guilty or a conviction following a plea of nolo contendere is deemed to be a conviction irrespective of whether an order
granting probation or other order is made suspending the imposition of the sentence or whether sentence is imposed for
execution thereof is suspended.
(j)
For purposes of this section, IRS Schedule SE is dened as IRS Form 1040 Schedule SE, or in the case of statutory
employees under the Internal Revenue Code, it shall be dened as IRS Form 1040 Schedule C, or the California Resident
Income Tax Return, DE 540, when accompanied by IRS Form W-2.
Elections led under Section 708.5 of the CUIC are subject to verication by the Employment Development Department (EDD)
that the individual is in fact self-employed rather than an employee of another individual or rm. If an individual ling an
application for coverage under Section 708.5 of the CUIC as a self-employed individual has any knowledge of a prior ruling
issued by the EDD concerning his or her status, reference to such ruling should be made on the application form and, if
possible, a copy of the ruling attached.
Cost of Coverage
You will receive notication of the following year’s premium rate, reportable “income credits,” and premiums payable with your
fourth quarter premium notice. You may estimate the cost of coverage using form Disability Insurance Elective Coverage
(DIEC) Rate Notice and Instructions for Computing Annual Premiums, DE 3DI-I, or call the phone number shown on the front of
your application for assistance.
Quarterly Report Required
The Quarterly Premium Notice for Disability Insurance Elective Coverage, DE 3DI, must be led each quarter whether or not
premiums are due. This notice is normally mailed by the last day of the calendar quarter. The DE 3DI and premiums are due on
the rst day of the following calendar quarter and become delinquent if not paid on or before the last day of that month. Failure
to receive a DE 3DI does not relieve you of the responsibility to pay your premiums on time. Submitting the DE 3DI with
disability information is not a claim for benets. Contact your local Disability Insurance benet ofce for claim information.
Reportable Compensation
Any adjustment of the reportable income credits and premiums due to State Disability Insurance (SDI) or Paid Family
Leave (PFL) must be noted on the DE 3DI. If you have any questions regarding computing or adjusting the reportable
income credits and premiums, contact your local Employment Tax Ofce or call the Analysis Resolution and
Correspondence Organization at 888 745 3886.
Benet Eligibility
The EDD determines eligibility for SDI and PFL benets pursuant to the CUIC and authorized regulations. Generally, a
minimum of several months must elapse from the commencement date of coverage before a valid claim may be led
based solely on income credits reportable under your election. Eligibility is dependent on a number of factors including:
proof of a claimant’s eligibility, ling of a timely claim for benets, and ling and payment of all required reports and amounts
due. Weekly SDI or PFL benets are payable under elective coverage regardless of whether the claimant continues to receive
any compensation from his or her business.
The SDI benets cover both work related and non-occupational injuries and illness. For SDI benet information, see the
pamphlet Disability Insurance Provisions, DE 2515, or contact your local DI eld ofce at 800-480-3287.
Cancellation/Termination of Elective Coverage
A participant may cancel his or her elective coverage agreement as of January 1 of any calendar year, and only if the
agreement has been in effect for two complete calendar years, by ling a letter with the EDD requesting termination on or
before January 31 of that year.
The EDD may terminate your elective coverage agreement if it is found that any of the “Conditions for Denial of
Coverage” exist or you meet one of the following conditions for termination of coverage by the EDD found in Section
704.1 of the CUIC:
Section 704.1(a)(5): The self-employed individual reports a net prot of less than $4,600 on his or her IRS Service
Schedule SE for a third consecutive year.
Section 704.1(a)(7): The employing unit or self-employed individual, or a representative thereof, is found by the
director to have led a false statement in order to be considered eligible for elective coverage.
You will be given written notication of the EDD’s termination of your elective coverage agreement and will have 30
days to le a Petition for Review of the termination of elective coverage. The termination shall not affect the liability of the
self
-employed individual for any premiums due, owing or unpaid to the EDD. Termination by the EDD may affect your ability to
draw SDI benets.
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.