2024 Ca Sdi Wage Limit. All california wages are now subject to a 0.9% sti tax withholding. Prior to the end of 2022, s.b.
California sdi taxes are paid by employees. However, starting in 2024, this wage cap will be eliminated, and all wages subject to sdi taxation will be taxed at a rate of 1.1%.
For 2024, The Sdi Withholding Rate Increases To 1.1 Percent With No Taxable Wage Limit And Maximum Withholding For Each Employee Subject To Sdi Contributions.
For 2023, the sdi wage base is $153,164.
($153,164 X 0.9%) Assuming The Sdi Withholding Rate Remains At 0.9% In 2024, A California Employee Earning $500,000 Will Pay $4,500 ($500,000 X 0.9%) In Sdi Tax, Over 3 Times The Amount.
This means there is no cap or limit on the maximum amount of withholding for employee contributions to sdi.
The Sponsor Of The Sb 951 Projects That 92% Of Workers Will See No Change To Their Annual Contribution While Those Making Over The Current Taxable Wage Ceiling Are Comprised Of The 8% Of Workers Who Will Experience Increased Taxes.
Images References :
Under Sb 951, Enacted In 2022 And Effective January 1, 2024, The Contribution Limit (Wage Cap) Applicable To California’s State Disability Insurance (Sdi) Tax Is Removed, Resulting In Sdi Tax On All Taxable Wages.
Taxable wage limit* california :
Effective January 1, 2024, The State Disability Insurance (Sdi) Tax (Currently Set At 1.1% For 2024) Will Apply To An Employee’s Total Wages Rather Than Being Capped At A Specified Amount.
Mike mccluskey, senior technical editor, calchamber.
($153,164 X 0.9%) Assuming The Sdi Withholding Rate Remains At 0.9% In 2024, A California Employee Earning $500,000 Will Pay $4,500 ($500,000 X 0.9%) In Sdi Tax, Over 3 Times The Amount.