@017 CHAP 11
@CODE: CA
@CODE:NF
@CODE: CA

        ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿
        ³  CALIFORNIA STATE DISABILITY INSURANCE (SDI)  ³
        ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ

California law requires employees to pay a payroll tax
(which must be withheld and paid over by the employer) on
their wages, in return for mandatory coverage under the
state's disability insurance program.  In 1993, the tax is
1.3% of the first $31,767 of an employee's wages, or a
maximum of tax of $412.97.  Note that this tax applies only
to the wages of an employee, including an owner employed by
his or her own corporation.  If you are not incorporated,
SDI does not apply to your earnings from the business as a
sole proprietor or partner.  California now allows a sole
stockholder who is an officer of the corporation to elect
out of SDI coverage for himself or herself--Form DE 459
(but not from UI coverage).