Wondering when that California Disability (SDI) Tax line will disappear from your pay stub? As recently as March 2000 the rate was $231 per year (0.5% on $46,327 max). Then reform started. Reform, in California, usually means I pay more. Well, here's what's been happening the last few years:
The State Disability Insurance (SDI) Contribution Rate for 2001, 2002, and 2003 is 0.9% (.009). The SDI taxable wage limit is $46,327 per employee for calendar years 2001 and 2002, $56,916 for 2003.Which makes the 2001-2003 maximums respectively $417.94, $417.94 & $512.24 -- more than doubling the tax from 2000 to 2003 on the middle class. Even minimum-wage workers saw their percentage rate climb from 0.5% to 0.9% during this period. But wait...
The State Disability Insurance (SDI) withholding rate for 2004 has been announced as 1.18%, which includes 0.08% for Paid Family Leave. The SDI taxable wage limit is $68,829 per employee for calendar year 2004. The maximum to withhold is $812.18.So, in the last year, while the car tax was going down, this payroll tax on the middle class was going up 22% in 2003 and then 58% in 2004. Even a minimum-wage worker with much less than the maximum income saw a 31% jump in this tax compared to last year.
Good post. I know I'm overtaxed, and this sort of thing just pisses me off more.
Posted by: Director Mitch at May 13, 2004 04:52 PMThat just sucks - I was thinking this was coming on my latest paycheck. What a lousy let-down.
Posted by: mark at May 27, 2004 04:55 PM