Who is responsible for paying SDI?

Who is responsible for paying SDI?

• A. The employee pays the entire amount
• B. The employer pays the entire amount
• C. The state pays the entire amount
• D. The contractor pays the entire amount

Answer: (A)

SDI stands for State Disability Insurance. In California, this program is funded by employees through a payroll deduction, so the employee’s wages have an SDI amount withheld and remitted to the state. The employer’s role is to withhold and pass that money along; the cost is borne by the employee, not the employer (or the state or a contractor). If you’re self-employed, your situation is different, but for employees the SDI payment comes from the employee’s earnings.

SDI stands for State Disability Insurance. In California, this program is funded by employees through a payroll deduction, so the employee’s wages have an SDI amount withheld and remitted to the state. The employer’s role is to withhold and pass that money along; the cost is borne by the employee, not the employer (or the state or a contractor). If you’re self-employed, your situation is different, but for employees the SDI payment comes from the employee’s earnings.