Verify and change your State Disability Insurance (SDI) rate
PrintOverview
This article explains how the State Disability Insurance (SDI) rate is set, how to verify the rate QuickBooks is using for its calculation, and how you can change the SDI rate.
Assumptions
You have received SDI rate change information from a state agency, and QuickBooks allows you to make the change because your state has multiple rates.
Expected Outcome
You will change your SDI rate or verify that your current rate is the same as the rate sent by your state agency.
Details
You cannot edit the State Disability Insurance (SDI) rates supplied by the tax table for some states. However, if there is more than one rate for your state, you can edit the SDI item by selecting the appropriate rate from a drop-down arrow or by entering the rate.
To verify which SDI rate QuickBooks is currently using:
QuickBooks Pro and Premier
Choose Lists > Payroll Item List.
Click the Reports button and select Payroll Item Listing.
Go to the Payroll Item column to locate your SDI item. The Amount column shows the assigned rate.
Simple Start
Choose Payroll at the top to enter the Payroll Center.
Choose Setup and Maintain > View/Edit Payroll Items.
Choose Related Activities > View Payroll Items Report on the left.
Go to the Payroll Item column to locate your SDI item. The Amount column shows the assigned rate.
To edit the rate for your SDI payroll item:
QuickBooks Pro and Premier
Choose Lists > Payroll Item List.
Select your SDI item and at the bottom choose Payroll Item > Edit Payroll Item.
Click Next through the Edit Payroll Item windows until you reach the Company and Employee Tax rate section.
Enter the new tax rate.
- If the SDI rate displayed was entered manually, you can enter the new rate now. (For example, the tax table does not set a rate for NJ, so you can enter whatever percentage you want.
- If the SDI rate displayed was provided by the tax table, click the drop-down arrow and select a rate. (For example, CA has rates of 1.1% and 0 provided by the tax table, so you can choose either one.)
Click Finish.
Simple Start
Under Money Out, move your pointer over Payroll and click Go to the Payroll Center.
Click the Setup and Maintain drop-down arrow and select View/Edit Payroll Items.
Select your SDI item, then right-click and select Edit Payroll Item.
Click Next through the Edit Payroll Item windows until you reach the Company and Employee Tax rate section.
Enter the new tax rate.
- If the SDI rate displayed was entered manually, you can enter the new rate now. (For example, the tax table does not set a rate for NJ, so you can enter whatever percentage you want.)
- If the SDI rate displayed was provided by the tax table, click the drop-down arrow and select a rate. (For example, CA has rates of 1.1% and 0 provided by the tax table, so you can choose either one.)
Click Finish.
