What Is CA OASDI/EE on My Paycheck?
Unpack CA OASDI/EE on your paycheck. This guide explains how these essential contributions secure your future through federal and state programs.
When reviewing a paycheck, “CA OASDI/EE” represents mandatory contributions that fund essential federal and state benefits. These deductions are taken from an employee’s gross wages to support programs providing financial security and healthcare. Understanding these components helps clarify how these contributions support a broader safety net.
The Federal Component: OASDI
The “OASDI” portion stands for Old-Age, Survivors, and Disability Insurance, which are the federal Social Security and Medicare taxes. These taxes are collected under the Federal Insurance Contributions Act (FICA). For 2025, the Social Security tax rate for employees is 6.2% on earnings up to a wage base limit of $176,100. Income above this limit is not subject to Social Security tax.
The Medicare tax, also part of OASDI, has a rate of 1.45% for employees, with no wage base limit. An Additional Medicare Tax of 0.9% applies to an individual’s wages exceeding $200,000. The “EE” in OASDI/EE indicates that these are the employee’s contributions.
It offers retirement income to eligible workers and their spouses. Additionally, it provides disability benefits to those unable to work due to a severe medical condition, and survivor benefits to eligible family members of a deceased worker. Medicare primarily funds Medicare Part A, which covers hospital insurance for individuals aged 65 or older and certain younger individuals with disabilities. This includes inpatient hospital care, skilled nursing facility care, hospice care, and some home health services.
The California Component: SDI and PFL
The “CA” refers to California’s state-mandated programs, primarily State Disability Insurance (SDI) and Paid Family Leave (PFL). These programs are funded entirely by employee contributions. For 2025, the California SDI withholding rate for employees is 1.2% of all wages. Effective January 1, 2024, eliminated the taxable wage limit for SDI contributions, meaning all wages are now subject to this tax.
California’s SDI program provides partial wage replacement to eligible workers who are unable to work due to a non-work-related illness, injury, or pregnancy. This temporary financial assistance helps bridge income gaps during periods of disability. PFL, administered through the SDI program, extends wage replacement benefits to individuals who need time off work for specific family-related reasons.
The PFL program covers situations such as caring for a seriously ill family member, bonding with a new child (through birth, adoption, or foster care placement), or managing a qualifying event due to a family member’s military deployment to a foreign country. These contributions ensure that California workers have access to vital support during significant life events that necessitate a temporary absence from employment. Both SDI and PFL are designed to alleviate financial strain during these challenging times.
Understanding the Benefits of Your Contributions
The contributions made through CA OASDI/EE deductions provide access to a range of benefits. For federal Social Security, individuals may become eligible for retirement benefits based on their work history and contributions, providing income in their later years. Survivor benefits are available to eligible family members, such as spouses, children, or dependent parents, after a worker’s death. Disability benefits are also provided to workers who become severely disabled and can no longer engage in substantial gainful activity, provided they meet specific work credit requirements.
Federal Medicare contributions primarily fund Medicare Part A, which assists with hospital stays, skilled nursing facility care, and hospice services for eligible individuals, generally those aged 65 or older or with certain disabilities. For California’s SDI program, eligible individuals can receive temporary wage replacement when they are unable to work due to a non-work-related illness, injury, or pregnancy, with benefits potentially lasting up to 52 weeks. For claims beginning on or after January 1, 2025, the weekly benefit amount will range from 70% to 90% of wages, depending on income, with a maximum weekly benefit of $1,681.
California PFL provides wage replacement for up to eight weeks within a 12-month period for qualifying family care situations. This includes time taken to bond with a new child or to care for a seriously ill family member. The wage replacement rates for PFL claims beginning on or after January 1, 2025, mirror those of SDI, offering 70% to 90% of wages, up to a maximum weekly benefit of $1,681.