NY SDI rates

[masood syed]

I am trying to set SDI, in NY the employee contribution is 1/2 of 1% of wages, to a max of .60 cents. I am entering it under state tax II at .50% w. 120.00 cut off, but nothing shows as taken when I pay my employees. Please help.

[Paul Mayer]

That is not really an SDI tax. It is a voluntary deduction that you may take from the employee's with a maximum of 60 cents per pay period. You get to keep that to supplement your unemployment costs.

It also requires you to manage it and this is a reason that many elect not to use this as if a person has more than one job, you need to split that 60 cents between you and the other employer. And it has to be split by the number of hours worked for the different employers. Hard to manage.

The only way you can do this is to create a miscellaneous deduction and since your employees are earning more than $120 per pay period, set the deduction to 60 cents in the employee settings.