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I'm an employer in California. Is the SDI I pay on my employee's wages deductible on my Federal taxes?

I run a sole proprietorship with 3 employees.  I pay SDI (State Disability Insurance) on their wages to the State Of California.  This is basically a tax that the state mandates.  It's about 1% of the total wages I pay to my employees.  

Is this SDI I pay deductible on Schedule C?

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3 Replies
DeniseF1
New Member

I'm an employer in California. Is the SDI I pay on my employee's wages deductible on my Federal taxes?

On your Schedule C, you will report the disability paid to the state as an expense (insurance) but you do not include the details which you report to the state.  In addition, you would report her wages in the same manner as an expense.

I'm an employer in California. Is the SDI I pay on my employee's wages deductible on my Federal taxes?

SDI is taken from the employees wages NOT your pocket.   When you report your employees gross wages as an expense, you've already deducted the SDI that's been paid in.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

I'm an employer in California. Is the SDI I pay on my employee's wages deductible on my Federal taxes?

Lisa995, Are you sure?  It shows up as an amount due on my DE9 form that I file with the state of California.
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