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annanderic
Level 2

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

 
57 Comments
AlcaeusF
Moderator

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Thank you for posting here in the Community, @annanderic.

 

Can you share with me which state you're referring to? The basis for the tax calculation will depend on the employee details and the program will automatically calculate them for you.

 

However, since every state is unique and governs by their own policies, we calculate the State Disability Insurance (SDI) according to their rules. This means, the rate and wage base limits are defined by them.

 

For additional information and detailed steps on how to set up SDI, check out the following article. It also contains extra details depending on your state:

 

Set up state disability insurance (SDI or TDI) for CA, HI, NJ, NY, and RI.

 

I want to make sure this is taken care of for you. If you have additional questions or concerns while working in QBO, leave a comment below. I’m here ready to help you.

lburbridge
Level 1

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

I am in California. My CPA gave me an SDI withholding rate of 0.9% however QB only gives the option of 0.0% or 1.0%, without the ability to manually adjust. I have downloaded the latest payroll updates and the wage limit updated but not the rate. Can you help?

Kristine Mae
QuickBooks Team

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

It looks like you're using the Desktop version, Lburbridge. I'd like to share what I know about State Disability Insurance (SDI).

 

The State Disability Insurance (SDI) withholding rate for 2020 is 1% percent. The taxable wage limit is $122,909 for each employee per calendar year, and the maximum to withhold for each employee is $1,229.09. You can refer to the EDD website for the Rates, Withholding Schedules, and Meals and Lodging Values

 

Our program is compliant with your state rules and we're using the default rate. This is the reason why you can only select 1% (default) and 0% (exempt).

 

You can also check the article about California Payroll Tax Compliance to ensure compliance with your state regulations. 

 

Don't hesitate to let us know if you have additional questions. Just click the Reply button below. 

BethatVIVO
Level 4

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Currently setting up payroll in QBO.  We have an employee who lives in CA (our HQ is in IL), when attempting to enter her 2020 payroll info, there is no option to input her SDI that has been w/held.  It also gives me an error message as the amounts aren't adding up b/c I am mising the SDI.  Any suggestions?  Thanks!

 

JessT
QuickBooks Team

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Hi BethatVIVO,

 

As long as the correct address is entered, QuickBooks will automatically provide boxes for the respected taxes and pay information. You can try refreshing the page or doing the browsing troubleshooting steps. If the same thing happens, please contact our Payroll Support. That way, they can start a screen-sharing session to check this further.

  1. Click on Help and choose Contact Us.
  2. Paste your question in the text box and click Let's talk.
  3. Choose between Message an agent or Get a callback. These options are available during their office hours.

If you have other questions please let me know. You can also check more references for payroll on the QuickBooks Support page.

dberlino
Level 1

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

The new tax rate for California is 1.2%. I can not change it on my QB desktop. All of my clients have had their tax rate change for SDI. How can we change it?

ChristieAnn
QuickBooks Team

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Hi there, dberlino.

 

Welcome to QuickBooks Community. I'll share steps to ensure you're able to change the new California tax rate for SDI. I suggest going to the Payroll Item List page. From there, you'll able to see the Company tax rates section to change the correct rates.

 

Here's how:

 

  1. Click the Lists menu at the top and select Payroll Item List.
  2. Double-click [state abbreviation] - Unemployment Company.
  3. Choose Next until you reach the page “Company tax rates”.
  4. Enter the correct rates for each quarter.
  5. Hit Next and Finish.

 

For additional information, you click this article: Update your State Unemployment Insurance (SUI) rate in QuickBooks or Intuit Payroll.

 

Once you're unable to save or can't change the rate after following the steps above, it may be that your state rates supplied by the next tax table updates. Make sure your tax tables are always up to date, so you stay compliant with the government. Before changing or updating your disability tax rate, make sure to download the Latest QuickBooks Payroll Tax Table. Please follow the steps below.

 

  1. Choose the Employees menu at the top.
  2. Select Get Payroll Updates.
  3. Choose the Download Entire Update checkbox.
  4. Select Download Latest Update. A window appears when the download is complete.

 

For further details, you may refer to this article: Get the latest payroll tax table update.

 

However, if the issue continues to occur, I recommend running the verify rebuild utility tool. This helps us identify data issues in your company file and resolve them. Please open this article to see the process: Verify and Rebuild Data in QuickBooks Desktop.

 

Please click this article to see different information to find details on tax forms, withholdings, unemployment, and other tax, e-file: California Payroll Tax Compliance.

 

Should you need anything else, don't hesitate to comment below. I'm always around to help. Stay safe and take care always.

Susan T8
Level 3

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

I believe dberlino is referring to the California SDI rate, not SUI rate. SDI goes from 1% to 1.2% on January 1st 2021.  I am having the same issue trying to process a 2021 payroll and not getting the new SDI rate.  When will this be fixed?

 

Susan

Susan T8
Level 3

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

I believe dberlino is referring to the California SDI rate, not SUI rate.  I am having the same issue.  When I run paychecks dated in 2021 the SDI rate should be 1.2%, but it is still calculating at 1%.  When will this be fixed?

 

Thanks,

Susan

Tori B
QuickBooks Team

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Hey there, @Susan T8

 

Thanks for following the thread. I'm happy to provide additional insight into the California SDI rate. 

 

At this time, we haven't released the new tax table for the 2021 year. Once the new tax table is released, you can run a payroll update, which will then correct the SDI rate. We will keep you posted here in the Community once an update has been released. 

 

Please do let me know if you have further questions or concerns. You can reach out to the Community or me at any time. Take care and have a great rest of your day! 

Susan T8
Level 3

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Thanks for the response.  As Jan 1st is only four days away and we have direct deposit paychecks for January I hope the update arrives by Wednesday!

 

Thanks,

Susan

123146
Level 1

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

I am replying to this so that I can be notified of the 2021 update as well.  We have direct deposit paychecks that we were looking to process today, but that appears that it will not happen.  It is already December 28, hopefully this is on the top of the queue.

87dlh87
Level 2

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

I fail to understand why we cannot receive accurate payroll data/support from Intuit considering the outrageous rate for payroll software that Intuit is charging.  This has always been a function of the date of the paycheck, so a 1/1/21 paycheck should have the proper amount deducted.  It doesn't as of this post.  It is late in the evening on 12/28!  Businesses are already creating their payroll for January dates and Intuit seems to be stuck in 2020.

87dlh87
Level 2

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

I fail to understand why we cannot receive accurate payroll data/support from Intuit considering the outrageous rate for payroll software that Intuit is charging.  This has always been a function of the date of the paycheck, so a 1/1/21 paycheck should have the proper amount deducted.  It doesn't as of this post.  It is late in the evening on 12/28!  Businesses are already creating their payroll for January dates and Intuit seems to be stuck in 2020. Sorry if this appears twice - your message thread is difficult to deal with.

AileneA
QuickBooks Team

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Hello, 87dlh87. 

 

Thanks for posting in the Community. As per checking in the system, QuickBooks didn't release the latest tax table policy yet. Once we get notified about the new tax table release, we will update via email as soon as possible. 

 

Please feel free to check these articles to verify varies way information's on how to get the latest tax table:  

 

 

If you have any other questions, please Reply to the thread in the comment section. I'm here to help you. Take care!

123146
Level 1

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Do you have an estimate as to when the 2021 payroll tables will be available for processing?  If we are going to need to manually adjust the paychecks, because QuickBooks is behind, in order to process them now, we need to know ASAP in order to have time to do the proper calculations.

JonpriL
Moderator

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Hello @123146,

 

We're unable to provide the exact date or available time of the next payroll tax table for the year 2021. But don't worry as my colleague has mentioned, you'll be notified via email message once it is available for installation.

 

With this, you need this article for the steps of the installation process once the update is available: How to get the newest payroll tax table in QuickBooks Desktop Payroll to stay up to date?

 

Additionally, I've also included this helpful reference for a compilation of articles you can use for the year-end preparations: How you can prepare for the 2020 tax season?

 

If there's anything else that I can help you with, please let me know by leaving any comments below. I'll be here to lend a hand.

vbsinc18345
Level 2

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

I am with others on this. Why is this not updated. I just did a payroll for 1/5/21 and the rate is not updated. I did a payroll update, which was not set to do until February, and still has the old rates. I have now created direct deposit payments to 8 employees with the wrong rates. These rates have been known for quite sometime. Updated the rates should not be a big update. Please fix immediately, as we are having more and more 2021 checks. Doing manual calculation overrides is not what we pay for!

Sincerely

"Pissed Off 2021 SDI Rate debacle!"

87dlh87
Level 2

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

I agree with the comments above.  Intuit charges a stupidly large fee for payroll software/updates for desktop payroll and for that fee we expect accurate calculations.  Payroll update version 22101 is the latest update and  it indicates the tax tables for California have been updated.  Social Security tax limits were changed. The SDI rate is a simple percentage and limit.  There is no reason, except for sloppiness, that this was not updated.  This is not an entry that we can make on our own - we are locked out of editing this payroll item and I fear that if we attempt to change the deductions per paycheck created, your software will really make a mess of that.  It is not NOT ACCEPTABLE that we wait for this and I can see that your customers who are posting are angry and do not need advice as to "how to update the payroll version"! We are obviously doing that but the version is not complete.  We need an update now!! Or maybe you would like to provide a REFUND since we are not being supplied with what we paid for.  Anyone here ready for a class action lawsuit regarding Intuit's recent failings and privacy intrusions?

Suzi63
Level 1

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

AND the time it takes when QB is not working properly for each of us to spend the time to have to look up what is the problem is ridiculous.  Not only the cost but the friggan amount of time to figure out what the problem is and not have an answer on how to solve it two days before the payroll date of 1/1/2021.  Unbelievable!!!!

ldg4633
Level 2

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Anyone know how to adjust SDI for 2021.  QB update the Federal and State withholding taxes for 2021, but when I process a payroll for 1/4/21 the program is calculating the CA SDI rate at 1% instead of 1.2% which is the new rate for 2021.  

Adrian_A
Moderator

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Hi there, ldg4633.

 

 

You won't need to update your State Disability Insurance (SDI) rate for CA. The system will automatically calculate it. However, since the program is still calculating the old rate, I recommend reaching out to our Phone Support team. 

 

Our agents have extra tools that can verify your account and isolate what causes the miscalculation. Here's how:

 

  1. From the ? Help button, click Contact Us.
  2. Enter, The program is calculating the CA SDI rate at 1% instead of 1.2%.
  3. Click Continue.
  4. You can choose how you'll want to get in touch with them.

 

I've also added these references that have detailed information about the CA Payroll Tax Compliance:

 

 

Don't hesitate to let us know if you have additional questions. Just click the Reply button below. 

Susan T8
Level 3

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

Before you other California Quickbooks users spend a lot of time talking with the phone support team as I just did, the SDI rate is still not updated.  They expect it will be updated Monday morning "as it is still 2020".

 

Sigh,

Susan

debhulslander
Level 2

In QB online, is the SDI rate set by QB based on the state I select in the setup? In other words, I don't need to enter anything, QB will know the rate? THanks

We are required to pay 1.20%, for checks dated 1/5/21, direct deposit is due today, but Quick books will not calculate the correct SDI for CA, and it will not let you override. The attached article does not help. Penalties will be assessed for late taxes, How can we fix this ASAP- Direct deposits are due today

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