Too much CA SDI (state disability insurance) withheld?

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ishkadetto
Posts: 63
Joined: Thu May 24, 2018 2:49 pm
Location: California, USA

Too much CA SDI (state disability insurance) withheld?

Post by ishkadetto »

My tax software warns that there may have had been much CA SDI withheld. CA State Disability Insurance (SDI) withholding rate is currently 1%.

It looks like the amount that was withheld is 1% of the YTD gross pay number on the final paycheck of 2018.
The number the software gives for what it thinks the withholding should be should be is equal to 1% of Box 1 (wages, tips, other comp).

Employer used the gross amount pre-401k deductions; tax software uses a number post-401k deductions and post-employee meals deductions.

So my question is: CA SDI withholding rate is 1% of what exactly? Which is correct, the W2 or the tax software?
123
Posts: 6404
Joined: Fri Oct 12, 2012 3:55 pm

Re: Too much CA SDI (state disability insurance) withheld?

Post by 123 »

I would place reliance on the W-2 from the employer. The employer is the one in the best position to know how much they withheld from the paychecks they issued.
The closest helping hand is at the end of your own arm.
ladycat
Posts: 231
Joined: Fri Sep 28, 2018 5:02 pm

Re: Too much CA SDI (state disability insurance) withheld?

Post by ladycat »

Form 540 instructions line 74 pg 14 says 1% of gross wages, to a max of $1149.67
BusterMcTaco
Posts: 364
Joined: Tue Jul 11, 2017 6:36 pm

Re: Too much CA SDI (state disability insurance) withheld?

Post by BusterMcTaco »

BTW, if your employer did over-withhold, you will not get that back on your taxes. TurboTax said I would but the FTB said otherwise. My wife would have had to go after her (previous) employer for the money back which wasn't worth it for $20.
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