Asked by T

hat 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.

SDI is a payroll tax (typically paid by employees) that funds temporary disability benefits — payments to workers who are unable to work because of a non‑work‑related illness, injury, or pregnancy (and in some states also funds paid family leave). It is not the additional Medicare tax, not state unemployment insurance, and not employer‑paid workers’ compensation.