Update Applicable to:
All California employers and multi-state employers with at least 1 worker in California.
California Law SB 951 goes into effect on January 1, 2024, eliminating the taxable wage limit on employee wages subject to California’s State Disability Insurance (SDI) withholding rate.
What are the details?
California’s SDI program pays for the state’s paid family leave (PFL) and disability insurance. SB 951 takes effect on January 1, 2024, which eliminates the taxable wage limit on employee wages subject to California’s State Disability Insurance (SDI) withholding rate.
In 2023, the maximum taxable wage base for SDI was $153,164 and the SDI tax rate was 0.9 percent. For 2024, the SDI withholding rate increases to 1.1 percent with no taxable wage limit and maximum withholding for each employee subject to SDI contributions.
Employers should review additional resources here:
Learn more about how Vensure's California PEO services can help you navigate complex employment laws and keep your business compliant.
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