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September 23, 2021
Question

How to exempt a company owner from California SDI? Checkbox is grayed out.

  • September 23, 2021
  • 1 reply
  • 0 views

I am setting up payroll for the first time and I am running into an issue of exempting an employee from SDI. The owner's wife (who is co-owner) is on payroll and exempt from SDI. When I attempt to un-check the SDI box in State taxes, the box is grayed out and I cannot find a way around that block.

Any ideas are appreciated!

1 reply

BigRedConsulting
September 23, 2021

I don't remember ever seeing the box grayed out. 

 

Are any other tax boxes grayed out? What payroll subscription/ service are you using?

September 23, 2021

I am using QB Desktop Pro 2019 Payroll.

Yes, both boxes (SUI and SDI) next to the state selection drop-down menu are grayed out and unable to be unchecked. I am almost certain it is possible to do, as her previous checks made by our accountant do not include Disability.

BigRedConsulting
September 23, 2021

What payroll service are you subscribed to?  Basic, Enhanced, and Assisted are examples.

 

What happens if you change the state to a different state, save the employee without setting up SUI, and then edit the employee and change the state back?