The state of California changed the amount of the SDI Payroll Tax as of April 1, 2000. The tax should not be retroactive to the beginning of the year and needs to start as of April 1. Our system was designed to auto correct retroactively to the January 1, 2000. 

Example (tax was 3% and changed to 7% as of 4/1/2000), after percentage rate is changed, People's Choice Accounting for Windows attempts to auto correct the percentage calculation to the higher rate retroactively to January 1, 2000.

1. Enter the Taxes Tab.

2. Go to Taxes.

3. Select the appropriate tax.

4. Click on Tax Set-up.

5. Change the System Type to “State Tax – Special Formula ?”.

6. Enter the Tax Table and correct the percentage.

7. Click done and exit the taxes tab.

This will allow you to change the percentage and the system WILL NOT do an auto-correct of the tax back to the first of the year.  Using the “State Tax – Special Formula” types WILL print this tax on the W-2.

EXCEPTION:

If an employee makes over the $46,327 maximum taxable wage (or if the system projects the annual wage at $46,327or over), the maximum tax withheld will be $6.24 if a weekly payroll or $12.47 for a bi-weekly payroll and so on. For these employees the tax will have to be calculated manually. During the payroll process, after payroll is calculated, use the edit results button to override the calculated SDI amount. It is not necessary to recalculate payroll.