TaxBandits Knowledge Base

What is SDI(State Disability Insurance)?

State Disability Insurance(SDI) provides temporary benefits for workers who cannot work due to illness, injury, or pregnancy. This state fund supports the Paid Family Leave Program (PFL), which is also part of SDI and provides benefits for employers who can’t work due to certain situations, such as caring for seriously ill family members, temporary leave for caring for newborns, and other qualifying circumstances. Here’s the SDI tax rate for California.

Who Pays	Employee (employer withholds from employees wages)
Tax Rate	0.1%
Taxable wage Limit	$7000