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State to withhold more for disability insurance San Francisco Chronicle
The top amount California employees will pay into the State Disability Insurance fund will top $1,000 for the first time in 2010. Though that's only a small spread from this year, it's up sharply from $500 in 2007.
This payroll tax, better known as SDI, is paid by most California workers. It funds form disability payments.
The tax is similar to Social Security in that employers withhold a certain percentage of a worker's paycheck, but the tax ends for the year after the working man's wages have reached a certain limit.
The California Employment Development Department said recently that the withholding worth for next year will be the same as this year - 1.1 percent of pay. But the wage ceiling will rise to $93,316 next year from $90,669 this year.
As a development, the maximum tax will rise to $1,026 in 2010 from $997 this year.
The maximum weekly benefit paid to harmed workers also will go up, to $987 next year from $959 this year.
Legislation passed in 2000 tied the wage ceiling and the highest weekly benefit to increases in the average weekly wage in California.
