don't know if this completely answers your questions.
The Internal Revenue Service has ruled that the payments received under California’s Paid Family Leave insurance program are taxable for federal income tax purposes. According to the IRS, Family Temporary Disability Insurance payments are in the nature of unemployment compensation under Section 85 of the Internal Revenue Code. California’s Employment Development Department must report the FTDI payments to the IRS on a Form 1099G and, for federal tax purposes, FTDI payments must be included in a claimant’s gross income. The benefits, however, are not subject to California income tax under Revenue and Taxation Code § 17083 .
Recipients of benefits under the Paid Family Leave program received a letter with their benefits checks informing them that the IRS might consider the payments taxable income. Additional steps are being taken to notify claimants that the Forms 1099 they receive this year will reflect the taxable income.
but if they're not under CPFL program then these are the rules
1) amounts paid by an insurer attributable to premiums paid by the employer and not included in the employee's income are taxable as are amounts paid directly by the employer
2) disability insurance payments attributable to premiums paid by the taxpayer including after-tax contributions to an employer-sponsored plan, and employer-paid premiums if taxed to the employee are not taxable
if taxable you should receive a 1099.
