The California payroll SDI tax is 1.10% for 2024. HOWEVER the CA-DE9 report shows a SDI rate of 0.90% in QuickBooks Online!

I appreciate you letting us know, Matt1213. I've got ways to help you fix the California payroll SDI tax overpayment in your account.

There are some tax overpayments that aren't valid. To verify, you'll want to take into account the following situations:

• Incorrectly entered tax rate
• Incorrect liability period on a tax payment
• Incorrectly recorded historical tax payment

On the other hand, these are the following examples of valid tax overpayments:

• Your tax rate decreased after a tax payment was made. Update your SUI rate in QuickBooks to keep your SUI tax liability accurate.
• One or more paychecks were voided or deleted after a tax payment was made
• You made a duplicate tax payment in the same liability period

If the quarter hasn't ended yet, you can leave the overpayment as it is. It'll cover any additional payroll tax liabilities you have for the rest of the quarter until it's all used up.

But if you want to apply the overpayment to the next quarter or request a refund instead, follow these steps:

1. Go to Taxes, then Payroll Tax.
2. Select Payments.
3. Look for the Overpaid tax, and click Resolve. If you don’t see the Resolve option, contact our Customer Care Team for detailed assistance.
4. Select one of the following if available:

• Request a refund (Note that you'll need to contact your tax agency to get your refund)
• Apply to a future tax payment (recommended)

1. Select Confirm, then Done.
2. Contact the IRS or your state agency to request refunds or apply taxes to future periods.

See this link to learn what to do if you receive a payroll tax notice from the IRS or your state agency: Send in your payroll tax notice.

Furthermore, I'm including this guide to make sure you're compliant with your state payroll tax regulations: Payroll Tax Compliance.

I'm all ears to any additional queries you may have when managing taxes in your account. You can always reply to this post, and I'll be around whenever you need help. Take care and have a good one!

Thank you for your prompt response. As I mentioned in my problem statement, I am using QuickBooks Online, and the SDI tax rate cannot be adjusted as it can in the QuickBooks Desktop version. The SDI tax is automatically calculated as part of QuickBooks Online. The fact is that the SDI tax rate for California in 2024 is 1.10%, and the payroll taxes are being calculated correctly. However, only the SDI tax rate is showing up incorrectly on the DE9 filing report from QuickBooks Online.

Thanks Matt

We appreciate you providing further clarification regarding your SDI rate issue, Matt, and we can see the urgency of getting this resolved. Let me route you to the best help available.

We recommend contacting our Payroll Care team to have this investigated and help you fix the SDI rate on your DE9 report. To do this, here's how:

1. Sign in to your QuickBooks Online company.
2. Go to Help (?).
3. Select Contact Us.
4. Enter your concern, then select Let's talk.
5. Choose a way to connect with us: Start a chat with a support expert or Get a callback from the next available expert.

Additionally, QuickBooks offers various payroll reports that include valuable insights into your business and employees. For a comprehensive list and instructions on customization, please see this article: Run payroll reports.

We'll always be around if you need assistance with your payroll account and processing returns in QBO Payroll. Drop your comments below, and we'll ensure to help you out.

Calling in doesn't do any good.  I called in to report this issue.  After 35 minutes on hold, the agent just ended the call.  

Matt1213,

Did you ever get an answer as to how to fix the problem?

I have the same problem called in an spoke with a QBooks Rep of which had no idea what I was talking about then finally transferred me a payroll specialist that had to talk to someone else meanwhile we are waiting for an answer 30 minutes later and after hearing about all his illnesses I finally said when you figure this out can you email me the answer or call me back.  He said yes.... that was two days ago and I haven't heard anything!

So frustrating!!  I absolutely despise QBooks Payroll Online.  They took all of our control away to try and get us to pay more for then to run payroll!   Hopefully it gets corrected soon~

Hello, 

I talked with a payroll specialized on Monday, April 1, 2024.  The payroll specialized acknowledged the QuickBooks Online bug on the CA-DE9 Form.  

She promised to log an internal ticket with the QuickBooks development department, and the estimated response time is about 2 weeks.  

I completely agree with you that I had much more control using QuickBooks Desktop, and the QuickBooks Desktop version was much more solid than QuickBooks Online.

Fortunately, I decided since I'm using QuickBooks Online to file the QuickBooks Online-generated tax forms outside of Quickbooks, so I no longer need to rely on QuickBooks. 

I understand that this is not the answer you were looking for.  I wish that the company Intuit had conducted  more reliable unit testing before releasing new online updates. Additionally, Intuit needs to invest more money into their customer service department to bing them all up to speed with their own product lines.

Thanks Matt 

Thank you for your prompt response.  I agree 100% with everything you stated.  Fortunately I have some time before the DE-9 is due and if it isn't corrected I guess I will be filing it the old school way!

I'm in the same situation.  I calculate using QB, but file everything online.  That's how I discovered the discrepancy.  After being on a chat for almost 2 hours, and getting nowhere, I googled the problem and found this conversation.  I've alerted the person on chat to this discussion as well, because she was clueless to the situation. 

So basically all payroll for the first three months of 2024 have been incorrectly calculated for the SDI.  And the forms are incorrect.  I'm hoping Intuit can resolve this.

I still use desktop QB for my other business and it is SO MUCH BETTER than the online version. Sigh!

The person I was on chat with, says it's been escalated up and we should receive an email with updates and when it is fixed.

Good luck all!