Small Business Payroll Solution: How to Handle SDI Tax?

ezPaycheck payroll software is very flexible. With ezPaycheck, user can easily add a new deduction to handle SDI Tax, IRA plan, Garnishment, Donation, Dependent Care, Flexible Account or other local taxes.

 

Here are the steps on how to add a SDI Tax:

  • Step 1: Add a new deduction

1. Start ezPaycheck, click the left menu “Company Settings->Deductions” to  open Company Deduction Setup screen.

2. Check one Customized deduction item, then clicked the button behind it to open  Deduction Details sceen. 

3. Input the new name "SDI" for the Description field. 

4. If this is a deduction by percent,  you can check "Deduction in percentage of wage" option box and enter the value. Otherwise, leave it unchecked.

You also need to enter the uplimit for this deduction.

For example: The 2012 CA SDI tax rate is 1.0 percent (.010) of SDI taxable wages per employee, per year. This includes the rate for PFL. The maximum tax is $955.85 per employee, per year.

5. Check other tax options 

6. Click the "Save" button and closed Deduction details page. 

7. Click "save" button on Company Deduction Setup form to update the database.

 

  • Step 2: Update employee profile

1. Select one employee from employee list and edit his deduction option. 

2. Enter the amount or percent value.  

3. Click "next" 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

 

 

 

More information about ezPaycheck payroll software can be found at product page. 

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