What Are SDI Withholdings on a Paystub?

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SDI is withdrawn on top of other withholdings such as Social Security and Medicare.
SDI is withdrawn on top of other withholdings such as Social Security and Medicare. (Image: Comstock/Comstock/Getty Images)

Your paycheck represents your net earnings after all taxes and other required money has been withdrawn from your gross wages. Some items are clearly labeled, such as federal and state income tax. However, other items might not seem as clear. Some states require an SDI withholding. SDI stands for State Disability Insurance and is paid out to workers who have hurt themselves away from the job site and cannot work for a period of time.

Distinction

The major distinction between SDI and worker's compensation is that SDI is payable when a worker hurts himself or is diagnosed with an illness not related to his job site or office. If he injures himself or comes down with a work-related illness on the job site, it falls under the worker's compensation program. There are also eligibility requirements in order to make a SDI claim. While they vary slightly from state to state, some of the major points are the same.

An applicant must be unable to perform his regular job due to his disability for at least eight days. He must be suffering a wage loss and when the injury or illness occurred, he must have been employed or actively looking for work. Additionally, the claimant must be under the care of a doctor who verifies the condition within the initial eight days after the injury or illness occurs.

States that Withhold the Deduction

While every state is required to have a disability insurance program, only five states withhold money for SDI. Those states are California, Hawaii, New Jersey, New York and Rhode Island. Additionally, the territory of Puerto Rico also withholds SDI money from employees who work there. If you own or operate a business outside of these states, you do not have to withhold the money from your employee's paycheck.

Withholding Amounts

The withholding amounts for SDI vary by state. As of 2011, the California rate is 1.1 percent. In Hawaii, the cap is 0.5 percent of the employees wages up to a maximum of $4.51 per week. In New Jersey the amount is 0.05 percent of weekly wages. In New York it is 0.5 percent of wages, but not to exceed 60 cents per week. Rhode Island has a withholding rate of 1.5 percent. Finally, Puerto Rico's withholding is 0.3 percent of weekly wages.

Benefit Amount

The benefit amounts also vary by state or territory.The claimant's wage amount is used to calculate her benefit. As of 2011, the state of California has a minimum benefit of $50 and a maximum of $987 per week. In Hawaii the benefit is 58 percent of the claimant's weekly wages capped at $513. New Jersey pays two-thirds of the claimant's salary to a maximum of $559. New York pays 50 percent of wages with minimum benefit of $20 and a maximum of $170. Rhode Island pays 4.62 percent of quarterly wages with a minimum of $69 and a maximum of $700. Finally, Puerto Rico pays 65 percent of weekly wages with minimum of $12 and a maximum of $113.

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