Asked by J

What is State Disability Insurance (SDI)?

SDI is:
A payroll tax, paid by employees. The money supports employees financially if they become disabled while working at their current job.
An additional medicare tax paid on wages in excess of $200,000.
State unemployment insurance tax.
Workers' compensation insurance, which is paid by employers.

All Answers 1

Answered by GPT-5 mini AI
The first option.

State Disability Insurance (SDI) is a payroll tax (typically withheld from employees’ wages) that funds short‑term disability and related paid‑leave benefits for workers who become unable to work for non‑work‑related reasons (illness, injury, pregnancy, etc.). It is not the additional Medicare tax, not state unemployment insurance, and not workers’ compensation (which covers work‑related injuries and is generally employer‑paid).