California SDI Tax

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If you are an employee in California, State Disability Insurance (SDI) taxes are automatically removed from your pay. Every time you get paid, 0.9% of your pay goes to the SDI program. These taxes are also called SDI contribution.

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Why am I paying California SDI tax?

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Provides temporary benefit payments for non-work-related illness, injury or pregnancy to workers under the SDI program. SDI also provides Tax Paid Family Leave (PFL) benefits.

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Is California SDI Tax Mandatory?

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The State Disability Insurance (SDI) program and contributions are mandated by the California Unemployment Insurance Code.

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How is California SDI tax calculated?

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To calculate the SDI tax, multiply your total taxable wages for the current payroll period by the current SDI tax rate. For example, assuming a 2023 SDI tax rate of 1.2 percent, or 0.0120, an employee who receives a $1,000 salary in 2023 would be subject to a $12 SDI tax (1000 x 1.0120 = 1,012).

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California SDI Tax

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