State Disability Insurance Programs (e.g., California)

[Nassau]

My client would like to know whether short-term disability compensation paid by the state of California should be considered compensation for the purpose of a

401(k) plan and to calculate company contributions?

Short-term disability compensation paid directly by Company is considered compensation by the client, but they don’t know if the disability paid by the state of California, which is the only state with such provision, should count.

[K2retire]

How does the plan define compensation?