what is ca sdi tax

California State Disability Insurance (CASDI) is a payroll deduction for California State Disability Insurance. It is a partial wage-replacement insurance plan for eligible California workers, which provides short-term wage replacement benefits to eligible California workers who have a loss of wages when they are unable to work due to a non-work-related illness, injury, or pregnancy. The CASDI tax funds the states disability insurance program, which provides temporary wage replacement benefits to eligible employees who experience a non-work-related illness, injury, or pregnancy. Most California employees are required to pay the CASDI tax, but employers and certain small business owners do not. The SDI withholding rate for 2023 is 0.9 percent, and the taxable wage limit is $153,164 for each employee per calendar year.