I moved to CA back in February. I still work full-time for a company in Maryland. The company continues to deduct MD taxes as they said they did the same thing for another employee working at home.

I am not sure what I will have to do for taxes, but I will worry about that later. Now I just delivered a baby about a month ago and I just learnt that MD didn't have maternity DI benefits. I am wondering if I am eligible for CA PFL. I don't think the employer deduct SDI from my wages.

Thanks for your help in advance. I am very frustrating now....

I am wondering if I am eligible for CA PFL. I don't think the employer deduct SDI from my wages.

For California workers covered by State Disability Insurance, Paid Family Leave (PFL) insurance provides up to six weeks of benefits for individuals who must take time off to care for a seriously ill child, spouse, parent, or registered domestic partner, or to bond with a new minor child. If you were covered (looks like you weren't) under the Ca SDI, you should have been receiving that during the time you were unable to work due to pregnancy disability.

Having said that, however, if you were working from your home in California, CA law requires the employer cover you (and deduct the taxes from your pay) for State Disability Insurance. There is no exemption, to my knowledge, for "small" employers. Are you the only employee in California? How long have you been working for this employer?

Thank you for your reply. There is another employee also working at home in CA. I'm with the company for about 2 years but just moved to CA in February.

Here's what I'd do.
I'd file for CA PFL. Then let the employer explain to the state why they weren't deducting the required taxes.

Boy, big mistake on the tax stuff. By virtue of the fact that you are working in the state, even if from your home, the company has established nexus (business presence) in the state and, as such, is subject to all state laws and regulations. Idiots. (frown)

kickoman: I am wondering if I am eligible for CA PFL

Most likely - yes, but be mindful that there are no mandatory job reinstatement rights under CA PFL.

You can read more about the program, eligibility requirements, benefit calculations, etc here: http://www.edd.ca.gov/Disability/FAQs_for_Paid_Family_Leave.htm#Eligibility

Thank you all for the response. My concern is that because neither I nor the employer has contributed to SDI, I am not sure if I would be covered under CA PFL.

About the taxes, would I have to pay CA tax penalty for not paying CA taxes? I do not have any idea about these issues when I moved. The company told me that it's the way they have been doing for another employee in CA.

I honestly don't know. However, if the employer should have been withholding (and they should have), they will have penalties, interest, and will have to (eventually) pay over what they should have withheld from you (although they may deduct the taxes from your future pay).

Same with state income taxes. If you are underwithheld, and you most certainly will be, there will be an underwithholding penalty for you and penalties and interest for the employer for failure to comply with state tax regulations. If they don't fix this before year-end, your best bet is to file your non-resident return in MD ASAP to get your refund.

Do you need something to show the employer that they're required to register as an employer and withhold all the appropriate taxes?
http://www.edd.ca.gov/pdf_pub_ctr/de44-08.pdf

Pattymd: Regarding state income taxes - If you are underwithheld, and you most certainly will be, there will be an underwithholding penalty for you...

Probably not. California has a number of safehaven, escape hatches that prevent the assessment of underpayment of tax penalties - one of them being that a taxapyer remits in the current year (2008) via payroll tax withholdings and estimated tax payments 100% of the taxes owed to the state of California in the prior year (2007). According to my understanding of your situation, this would be $0.