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?
You'll need to sign in or create an account to connect with an expert.
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.
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.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
SGL2023
Level 1
mdcdeve
Returning Member
NYCtaxAvoider
Level 2
bschug16
Level 1
Fólà
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.