|
Change in SDI withholding rate
February 2000
Sacramento, California – Effective April 1, 2000, the state disability
Insurance (SDI) withholding rate will increase to 0.7% (.007)
The Chart below shows the two SDI withholding
rates that are in effect for the calendar year 2000.
|
Wages
Paid During
|
Withholding
Rate
|
|
January
1 - March 31
|
0.5%
(.005)
|
|
April 1
- December 31
|
0.7%
(.007)
|
The SDI taxable wage limit will remain at $46,327
per employee for calendar year 2000.
Your Payroll Tax Deposit (DE88) may
include the preprinted 0.5% SDI rate. It is important to note that you
will not receive new coupons so be sure that you withhold at 0.7%
starting with wages paid on or after April 1, 2000.
The EDD is currently developing year-end
reporting guidelines for the calendar year 2000. VPA will provide you
with additional information as it becomes available.
|