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.
Step 2. Edit employee settings to specify the rate of the new deduction
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.
Troubleshooting
Why the social security tax is not correct Why the federal income tax is not correct Why the state income tax is not correct
Related Topics
ezPaycheck Quick Start Guide How a add a new company account How to handle both employees and contractors How to handle restaurant tips How to add a custom deduction and withhold it from each paycheck automatically How to handle local taxes How to handle State Disability Insurance (SDI) How to print paycheck in different formats: check-on-top, check-in-middle, check-at-bottom or 3-per-page How to print paycheck on blank stock How to print paycheck on pre-printed checks How to print paycheck with company logo How to adjust check printing position Sample Paychecks Determine a Company's Name for e-Filing 
