How the State will Soon Deduct More Money from California Workers' Paychecks
The State Disability Insurance (SDI) tax in California will witness an increase starting from January 2025. The Employment Development Department (EDD), which manages the program, has confirmed that the SDI rate will elevate from 1.1% to 1.2% in 2025. This revision entails that an individual with $100,000 in taxable annual wages will have an additional $100 withheld from their pay throughout the upcoming year. The adjustment will affect the majority of workers in the state, except those working for certain public agencies or collective bargaining agreements which do not pay into SDI. From January 2025, workers earning less than $63,000 per year will receive 90% of their pay as disability insurance and paid family leave benefits. Higher-income workers will receive 70%. The increase is intended to make these programs more accessible for Californians needing to recover from injury, care for an ill family member, assist a military family member or bond with a new child.
For those wondering how to contact SDI about these changes, the EDD suggests referring to their State Disability Insurance webpage for more information. You can also find guidance on how to get a hold of SDI, including phone numbers and live chat options, on resources like eddcaller.com which specialize in providing up-to-date contact information for departments like the EDD and SDI.