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Text File | 1996-11-06 | 1KB | 27 lines

@017 CHAP 11
@CODE: CA
@CODE:NF
@CODE: CA

        ┌───────────────────────────────────────────────┐
        │  CALIFORNIA STATE DISABILITY INSURANCE (SDI)  │
        └───────────────────────────────────────────────┘

California law requires employees to pay a payroll tax
(which must be withheld and paid over by the employer) on
their wages, in return for mandatory coverage under the
state's disability insurance program.  In 1996, the tax
was 0.8% of the first $31,767 of an employee's wages, or a
maximum tax of $254.14.  In 1997, the rate is 0.5% of the
first $31,767 of an employee's wages, or a maximum tax of
$158.84.

Note that this tax applies only to the wages of an employee,
including an owner employed by his or her own corporation.
If you are not incorporated, SDI does not apply to your
earnings from the business as a sole proprietor or partner.
California now allows a sole stockholder who is an officer
of the corporation to elect out of SDI coverage for himself
or herself--but not from UI coverage.