Question

If a taxpayer has one employer what are their options if excess SDI or VPDI is withheld?

a. Claim the excess on either Form 540 2EZ or Form 540.

b. Complete the excess SDI/VPDI worksheet and enter the excess amount on Form 540, line 74.

c. Request a refund from the employer.

d. Request a refund from the Employment Development Department.

Answer 1

The State Disability Insurance withholding limit for 2019 is 1.00% of gross wages.

It can be claimed only if you have two or more employers.

But in the above case of single employer:

The excess SDI or VDPI cannot be claimed on Form 540.

You have to determine the excess amount in Line 74 by completing the SDI Worksheet.

Once you determine the amount, you have to request a refund from the employer.

Hence, the options are (b) and (c).

Please rate if you find the answer useful.