The year-to-date total for SDI withholding should match the cumulative amount taken out of each paycheck. Furthermore, if you are a new resident or recently became eligible for SDI, the transition might be reflected in the data within this specific box.
Understanding Box 14 CA SDI Year To Date Total On Your W-2
Since the federal W-2 designates specific boxes for federal taxes like Social Security and Medicare, but lacks a dedicated field for state-level deductions, California utilizes Box 14 to report the SDI withholding. How to Verify Your SDI Withholding To ensure the accuracy of the information on your W-2, you should always review the year-end document against your pay stubs.
Why is SDI Reported in Box 14? Box 14 exists to report any additional tax information that doesn't fit into the standardized fields of the W-2. While both are payroll deductions, they serve different purposes and are calculated using different rates and wage bases.
Box 14 CA SDI W2 Year To Date Total Explained
The money deducted is specifically allocated to fund the Paid Family Leave (PFL) and State Disability Insurance (SDI) programs, allowing eligible Californians to take time off for specific family or health reasons while receiving partial wage replacement. This ensures that the California Franchise Tax Board (FTB) can accurately track the amount of SDI tax an employee has paid throughout the year.
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