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.
For purposes of this section, IRS Schedule SE is dened as IRS Form 1040 Schedule SE, or in the case of statutory
employees under the Internal Revenue Code, it shall be dened 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 verication 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 notication 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 benets. Contact your local Disability Insurance benet ofce for claim information.
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 Ofce or call the Analysis Resolution and
Correspondence Organization at 888 745 3886.
The EDD determines eligibility for SDI and PFL benets 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 benets, and ling and payment of all required reports and amounts
due. Weekly SDI or PFL benets are payable under elective coverage regardless of whether the claimant continues to receive
any compensation from his or her business.
The SDI benets cover both work related and non-occupational injuries and illness. For SDI benet information, see the
pamphlet Disability Insurance Provisions, DE 2515, or contact your local DI eld ofce 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 prot 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 notication 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
-employed individual for any premiums due, owing or unpaid to the EDD. Termination by the EDD may affect your ability to
draw SDI benets.
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.