Under California law, what is the current State Disability Insurance (SDI) tax rate for employees in 2024?
Correct Answer
B) 0.9% of wages up to $153,164
The California SDI tax rate for 2024 is 0.9% of wages up to the wage cap of $153,164. This is deducted from employee wages to fund temporary disability benefits.
Why This Is the Correct Answer
The 2024 California SDI employee contribution rate is 0.9% on wages up to the $153,164 wage ceiling. This rate funds the SDI program that provides short-term disability and paid family leave benefits. It is withheld from employee paychecks, not paid by the employer.
Why the Other Options Are Wrong
Option A: 1.1% of wages up to $153,164
1.1% is incorrect — this rate has never been the official 2024 SDI rate. It may be confused with older UI employer rates or combined payroll tax estimates.
Option C: 0.6% of wages up to $153,164
0.6% is too low — this figure is closer to historical SDI rates from prior years (e.g., the 2021 rate was 1.0%) and does not reflect the 2024 rate.
Option D: 1.5% of wages up to $153,164
1.5% significantly overstates the 2024 SDI rate. This number is sometimes confused with workers' compensation rates or blended tax estimates, but it is not the correct SDI rate.
Memory Technique
Think '0.9 = nearly 1%.' SDI is almost — but not quite — 1 percent. The wage cap ($153,164) is roughly equal to the Social Security wage base in prior years, so connect the two for anchoring.
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