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Small Business Payroll: SDI(State Disability Insurance)


ezPaycheck payroll software is very flexible. With ezPaycheck, you can withhold SDI deduction from each paycheck easily.

This is a sample for CA SDI. The CA SDI withholding rate for 2023 is 0.9 percent. The taxable wage limit is $153,164 for each employee per calendar year. The maximum to withhold for each employee is $1,378.48.

Step 1. Set up SDI deduction

1.1 Start ezPaycheck, click the left menu "Company Settings->Deductions" to open the Company Deduction Setup screen.

1.2 Check "SDI" or one changeable deduction item, then clicked the button behind it to open the Deduction Details screen.

1.3. Input the name (ie: CA SDI)

1.4. Enter Yearly Uplimit (the maximum to withhold for each employee in a year)

1.5. Check the "Deduction in percentage of wage" option box.

1.6. Specify the W2 option. (ie: if you will report it on box 14 on W2 form, check the box 14 option)

1.7. Click the "Save" button on Deduction Details screen.

1.8. Click the "Save" button on Company Deduction Setup screen to update the database.

add SDI deduction

Step 2. Edit employee settings to specify the rate of the new deduction

set employee SDI rate

2.1. Select one employee from employee list and edit the deduction option.

2.2. Enter the percent value.

2.3. Click the "Next" button until the last page, then click the "Finish" button to save the change.

Step 3. Generate a new check

When you generate the new check, you will see this new SDI Tax on paycheck.

add paycheck with SDI deduction


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