CA SDI Withholding and W2 Form

[UUTerry]

California has a short term disability insurance (SDI) "tax" which most churches have opted out of.

I'm working with one church which has not.

The amount of money wihheld from the employee should show up in box 14 of the W2, preferably with the description "SDI".

Is there any way I can get it there?

Thanks,

Terry

[NeilZ]

California has a short term disability insurance (SDI) "tax" which most churches have opted out of.

I'm working with one church which has not.

The amount of money wihheld from the employee should show up in box 14 of the W2, preferably with the description "SDI".

Is there any way I can get it there?

Thanks,

Terry

Is this a tax that is withheld on a 'per paycheck' basis ??

BTW ... which version of Powerchurch are you using ?

[NeilZ]

Just a heads up on that SDI tax.

In Version 11, If you have an available Block 19 not being used by a local tax, you can setup the SDI as a regular payroll deduction that will display in the second Block 19 line.

Otherwise, if there is no second Block 19 open, as far as I can tell the only way to get it into the Block 14 is by editing the W-2 just before you print them for each employee, and typing in Block 14:

CASDI: 111.11 of course, you'd use the actual amount withheld.

This will work for v9 thru v11.

Hope this helps.

[UUTerry]

Thanks Neill,

I'm using V 11, and the amount withheld is a fixed percentage of the pay up to a cap.

I no one comes up with a way to get the deducted amount into box 14, I'll experiment with making the deduction a second state tax or a local tax and then edit the W2s to move it from the place where it shows up to box 14.

Terry

[NeilZ]

Thanks Neill,

I'm using V 11, and the amount withheld is a fixed percentage of the pay up to a cap.

I no one comes up with a way to get the deducted amount into box 14, I'll experiment with making the deduction a second state tax or a local tax and then edit the W2s to move it from the place where it shows up to box 14.

Terry

This is actually very easy to do in Powerchurch. According to the California website, if you don't have a spare Local Tax area, then you should use Box 14. So if you have a open box 19 line, I'd go with that.

Here in PA, I wouldn't as I have two local taxes that I need to report, a city and a school tax.

However, testing on my test system, shows that you can do the following:

You would create a new Tax Type for the CASDI. When you do that the system will ask if you want a state or local tax. In this case, you would want a local as it is printed in Box 19.

You then create a new Tax Table using the Generic: Flat Percentage model and the Tax Type you created above. Enter your percentage 1.2 for 2011, select amount is capped, enter the Cap Amount. Then move on to create the the Item Descriptions as you would any other tax deduction, but using the tax tables you just created. Enter your Liability Account from Funds Accounting and any Vendor ID that you pay, and your done.

Just add the new Payroll Item to all the employees.

I did test out the W-2 printing, and the CASDI did appear on the second Local Tax line as expected.

Hope this helps.