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CA SDI Withholding - no subject wage limit example


Medlin Software, Dennis

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For those who want an idea of what could happen if SS were to have a second tier, or simply apply to all wages...

CA's SDI (state disability, such as injury, pregnancy, etc.), paid by employees as a (currently 1.1%, next year .9%) wage deduction, is REMOVING the subject wage limit (currently 153164) which will make all wages subject to CA SDI.

As I was waiting for the Queen + Adam Lambert concert to start last week (GREAT show), I was thinking of how the Warriors players, and all other entertainers who do a gig in CA, will be paying more taxes (an actual issue for trying to sign free agents to play in CA - and the other CA too). There was a time when many team performers were getting a fair chunk in personal services income, but I think that went away with the salary cap rules, so I suspect they get wages for all earnings.

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