What Does SDI on My Check Deductions Stand for?

State Disability Insurance may be deducted from your paycheck.

Among the various deductions listed on your paycheck stub, you may see SUI and SDI, which stand for State Unemployment Insurance and State Disability Insurance, respectively. The State Disability programs provide temporary benefits to works for non-work-related injuries.


What SDI Does

Funded with deductions from workers' wages, the SDI programs provide temporary benefit payments to an employee who cannot work due to a non-work-related illness, injury or condition. A work-related disability would be administered under a state's Worker's Compensation program.


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States with SDI Programs

While all 50 states have State Disability Insurance programs, not all states have State Disability Insurance. Five states plus one territory require a State Disability Insurance Tax. They are New York, New Jersey, Rhode Island, California, Hawaii and Puerto Rico.


Withholding Rates

The amount withheld from your paycheck for SDI will depend on where you live. Each state sets its own withholding rate. The Taxable Base Wage, an amount after which SDI is no longer applied, also differs by state (see Resources).


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