Defining California SDI and ETT

 

Company Level Code defining the SDI Deduction (Percentage Based)

The XYZ Company sets up the SDI code as follows (based on 2003 limits and rates):

• The SDI wage base is $56,916.
• The SDI rate is .9%.
• The maximum per tax year is $512.244. (56916 x .009)
• The program will automatically calculate the Year Lmt. once the rate has been entered into the Amount field based upon the SDI wage base.

One Company Level Code is required to automate the SDI as detailed above.

Lets examine it in detail.

Field	Value	Comments
ID	80	The number assigned to this Code is determined by the user who created it. The only limitation is that they be between 80 and 84 due to the fact that these codes have been especially set up in CCS Payroll for State and Local taxes.
Description	SDI - California	The letters SDI or S.D.I. are required here. Any other description is optional.
Category	D	Deduction
Type	02	Percent of Gross
Frequency	0	Every Pay Period
Amount	0.900
Limit	$512.244
Balance	0	No balance is required for tax codes.
Tax Entities	All checked	This Code is not a pre-tax deduction to any other tax.
Global	Checked	All employees of a California company are liable for this tax.

 

Company Level Code defining the ETT Employer Tax (Percentage Based)

The XYZ Company sets up the ETT code as follows:

One Company Level Code is required to automate the ETT as detailed above.

Lets examine it in detail.

Field	Value	Comments
ID	81	The number assigned to this Code is determined by the user who created it. The only limitation is that they be between 80 and 84 due to the fact that these codes have been especially set up in CCS Payroll for State and Local taxes.
Description	ETT - California	The letters ETT are required here. Any other description is optional.
Category	X	Employer Taxes
Type	02	Percent of Gross
Frequency	0	Every Pay Period
Amount	0.100
Limit	$7.00
Balance	0	No balance is required for tax codes.
Tax Entities	All checked	This Code is not a pre-tax deduction as far as these withholding taxes are concerned.
Global	Checked	California Employers are liable for this tax.

If you wish to make the payment for these taxes via the CCS Payroll Program, add the necessary banking information by clicking on the Bank button. Remember to click the "Show Address" checkbox and fill in the agency name & address if you will be paying with a paper check. Also click on the Multiple Weeks checkbox unless you want each pay period's line item listed separately.

 

The Example above is for California employers; however, the CCS Payroll program has the ability to incorporate and handle any state or local tax requirement.