The California State Disability Insurance (SDI) withholding rates are updated for 2020, according to Tax News Update. The employee SDI withholding rate, which includes Paid Family Leave (PFL), remains at 1 percent.
The 2020 SDI taxable wage base is now $122,909, which is up from $118,371 for 2019. The maximum SDI to withhold from employees’ paychecks for 2020 is $1,229.09, up from $1,183.71 for 2019.
SDI is a partial wage-replacement insurance plan for eligible California workers. The SDI program is state-mandated and funded through employee payroll deductions. More than 18 million California workers are covered by the SDI program, according to California’s Employment Development Department (EDD).
EDD administers the SDI and PFL programs to help employees temporarily unable to work for personal reasons. Employers do not fund either the SDI or PFL. The programs receive funding through employee payroll deductions.
Employees can apply for SDI and other programs through the EDD website.
Vannessa Maravilla, Editor, CalChamber
CalChamber can get more information on SDI and other programs on the State Disability Insurance and Paid Family Leave page in HRCalifornia. Not a member? See what a CalChamber membership can do for you.