California’s State Disability Insurance (SDI) is a payroll tax that provides partial wage replacement to eligible workers who are unable to work due to non-work-related illness, injury, or pregnancy. Understanding how much SDI you pay and how much you can claim is crucial for both employees and employers.
California SDI Calculator (2024)
Enter Gross Earnings for Base Period
What Is California SDI?
California SDI is a state-mandated payroll tax that funds:
- Disability Insurance (DI): Partial wage replacement during periods of disability
- Paid Family Leave (PFL): Benefits for caring for a seriously ill family member or bonding with a new child
Key points:
- SDI is deducted directly from employee wages
- Employers remit the tax to the California Employment Development Department (EDD)
- Contribution rates and wage limits are set annually by the state
How the California SDI Calculator Works
- Input your gross wages or pay period earnings.
- Select your pay frequency: weekly, biweekly, semi-monthly, or monthly.
- Apply the SDI contribution rate:
- For 2025, the SDI tax rate is 0.9% of gross wages (subject to wage limits).
- Calculate the SDI deduction:
- SDI Deduction = Gross Wages × SDI Rate
- Optional: Calculate maximum SDI contribution for the year.
The calculator can also estimate weekly benefit amounts if you qualify for disability insurance, based on your prior earnings.
Formula Used (Plain Text)
SDI Contribution Calculation
SDI Deduction = Gross Wages × SDI Rate
- Gross Wages: Earnings for the pay period
- SDI Rate: 0.9% (2025 rate; subject to annual updates)
Maximum Contribution
Maximum SDI Contribution = SDI Wage Limit × SDI Rate
- SDI Wage Limit (2025): $153,164
- Maximum Contribution ≈ $1,378.48
Weekly Benefit Estimate (Optional)
Weekly Benefit = (Base Period Earnings ÷ 52) × 60–70%
- Base period = wages from a 12-month period prior to disability claim
- Benefit percentage depends on income level
How to Use the California SDI Calculator
Step-by-Step Instructions
- Enter your gross wages for the pay period.
- Select your pay frequency (weekly, biweekly, etc.).
- Click calculate.
- View results:
- SDI deduction for the pay period
- Year-to-date contributions (optional)
- Estimated weekly benefit if applicable
- Use results for payroll planning or personal budgeting.
Example Calculations
Example 1: Weekly Employee
- Gross Weekly Wages: $1,200
- SDI Rate: 0.9%
SDI Deduction = 1,200 × 0.009 = $10.80 per week
Example 2: Biweekly Employee
- Gross Biweekly Wages: $2,500
- SDI Rate: 0.9%
SDI Deduction = 2,500 × 0.009 = $22.50 per pay period
Example 3: Maximum Annual Contribution
- SDI Wage Limit: $153,164
- SDI Rate: 0.9%
Maximum Contribution = 153,164 × 0.009 ≈ $1,378.48
Example 4: Weekly Disability Benefit Estimate
- Base Period Earnings: $50,000 annually
- Weekly Average = 50,000 ÷ 52 ≈ $961.54
- Benefit Rate = 60%
Estimated Weekly Benefit = 961.54 × 0.60 ≈ $577 per week
Why Use a California SDI Calculator?
- Accurate deductions: Ensures correct payroll contributions
- Financial planning: Helps employees budget for SDI contributions and benefits
- Compliance: Assists employers in meeting state payroll tax requirements
- Benefit estimation: Determines potential disability or family leave benefits
- Time-saving: Eliminates manual SDI calculations
Tips for Using a California SDI Calculator
- Always enter accurate gross wages
- Check for annual SDI wage limit updates
- Use it to estimate year-to-date contributions
- Combine with other deductions for full payroll planning
- Consult the EDD website for current rates and maximum contribution limits
Common Mistakes to Avoid
- Using outdated SDI rates or wage limits
- Forgetting to account for partial pay periods
- Confusing SDI with federal Social Security or Medicare taxes
- Ignoring changes in pay frequency
- Miscalculating benefits without considering base period earnings
Frequently Asked Questions (FAQs)
- What is California SDI?
A payroll tax providing disability and paid family leave benefits. - Who pays SDI?
Employees pay SDI; employers withhold and remit it to EDD. - What is the current SDI rate?
0.9% of gross wages for 2025 (subject to annual changes). - Is there a maximum SDI contribution?
Yes, for 2025, the maximum contribution is approximately $1,378.48. - How is SDI deducted?
Automatically from employee paychecks. - Can I calculate SDI for different pay frequencies?
Yes, weekly, biweekly, semi-monthly, or monthly. - Does SDI apply to all wages?
It applies up to the annual SDI wage limit. - Can SDI deductions be tax-deductible?
SDI contributions are not deductible on federal tax returns. - What benefits does SDI cover?
Disability insurance for illness, injury, or pregnancy, and paid family leave. - How do I calculate weekly benefits?
Based on base period earnings, typically 60–70% of weekly wages. - Is SDI mandatory?
Yes, for California employees. - Can employers contribute to SDI?
No, SDI is employee-funded, though employers remit payments. - How do I check my SDI contribution?
Check your pay stub or the EDD online portal. - Can SDI be used for family leave?
Yes, under Paid Family Leave provisions. - Does part-time employment affect SDI?
Yes, contributions are based on actual gross wages. - Can SDI cover self-employed workers?
Optional, under the Disability Insurance Elective Coverage Program. - What if I exceed the SDI wage limit?
No further SDI is deducted once the annual limit is reached. - Does SDI affect unemployment insurance?
Separate from UI; SDI is for disability or family leave. - How often do SDI rates change?
Annually, as announced by the California EDD. - Who should use a California SDI Calculator?
Employees, payroll managers, accountants, and financial planners.
Conclusion
The California SDI Calculator is a crucial tool for employees and employers to accurately determine SDI contributions and potential benefits. By simplifying calculations and ensuring compliance with California payroll requirements, it helps with budgeting, payroll management, and financial planning. Accurate SDI calculation ensures employees are protected while maintaining efficient payroll operations.