Payroll Tax Info : CA Tax Changes : Tax Data

2016 California SDI Tax Rate and Wage Base

The California Disability Insurance (SDI) wage limit increases to $106,742. Change the value of the "DISABILITY TAX WAGE LIMIT" of the "CA" (California) record of the Tax Data File to 106742.00. The Employee SDI withholding remains unchanged at 0.9% (.00900). Verify the "DISABILITY EMPLOYEE TAX RATE" is set to 0.00900.

2016 California Unemployment Employer Tax Rate and Wage Base

The Employer Tax Rate for California Unemployment varies by company. Refer to the Notice of Contribution Rates (Form DE2088) you receive from the California Employment Development Department. To calculate the SUI rate, take your Unemployment Insurance (UI) Contribution and add your Employment Training Tax rate. Take the answer (a percent), change it to decimal form, and put the result in the EMPLOYER TAX RATE field under the column UNEMPLOYMENT. (For example, if your UI Contribution is 3.4% and your Employment Training Tax is 0.1%, your combined rate is 3.5%, and you enter .03500 in the Employer Rate field.) The Unemployment Wage Base remains at $7000.

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Reference:

California Rates, Withholding Schedules, and Meals and Lodging Values for . 2016