Each state that offers state disability insurance (SDI) operates its program
according to its own rules. In some states, you pay SDI to a private agency
instead of the state. Some states give the employer the choice of paying the
state or a private agency.
Important: If you pay SDI in Hawaii or New
York, use the QuickBooks preset SDI payroll items because QuickBooks Assisted
Payroll does not pay SDI for you.
Assisted Payroll does not make payments to
private agencies. If you are using Assisted Payroll and you
pay SDI for other states to a private agency, use the following
procedure to track SDI withholding and make the SDI payments to the private
Set up an employee-paid or company-paid
tax payroll item to track SDI. (In some states, you may need one of each.)
Name the payroll item SDI or something similar. (If the tax is
employee-paid, QuickBooks displays this name on the employee's Form W-2.)
For employee-paid deductions, use the "Other" tax tracking type. For
company-paid tax use the "None" tax tracking type.
Edit each employee record. In the Edit Employee window, choose Payroll and Compensation Info from the Change tabs drop-down list..
Click the Taxes button and click the State tab.
Clear the SDI checkbox.
Click the Other tab.
Click the Name drop-down list and choose the other tax payroll item(s).