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SueN7
Level 1

CA SDI & FICA

We have a new employee in California who has had the maximum amounts taken for CA SDI & FICA SS tax. How do we stop CA SDI from being taken out as well as FICA?

Solved
Best answer September 29, 2021

Best Answers
BigRedConsulting
Community Champion

CA SDI & FICA

Once you pay the employee enough wages to hit the max tax wages/amounts for the year the taxes will automatically stop.

 

Note that prior pay from another employer doesn't count: Each time an employee starts a new job, the taxes start over.

 

If this results in the employee paying to much for an employee-paid tax, like the employee portion of SS and Medicare, the employee will get a refund on their taxes for the overpaid amount.

 

Company paid taxes, however, don't work that way. Where an employee works multiple jobs in a year, each employer pays up to the max tax.

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2 Comments 2
BigRedConsulting
Community Champion

CA SDI & FICA

Once you pay the employee enough wages to hit the max tax wages/amounts for the year the taxes will automatically stop.

 

Note that prior pay from another employer doesn't count: Each time an employee starts a new job, the taxes start over.

 

If this results in the employee paying to much for an employee-paid tax, like the employee portion of SS and Medicare, the employee will get a refund on their taxes for the overpaid amount.

 

Company paid taxes, however, don't work that way. Where an employee works multiple jobs in a year, each employer pays up to the max tax.

SueN7
Level 1

CA SDI & FICA

BigRedConsulting, thanks so much for your quick response!  Much appreciated.

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