How to setup CA State Disability Insurance in Munis

I need to report SDI on the DE9C Report.  How should that be setup in Munis?

• Payroll

• California

• CA DE9C Report

SDI needs to be setup in Munis as a Deduction code in the Deduction Master.  The Limit Type on the SDI deduction needs to be Y - Calendar Year and the SDI Taxable Wage Limit amount should be entered in the Empe Limit field.  This value will need to be updated when the limit amount changes. 

When the DE9C Report is processed, a Shared Report Definition should be created for SDI specifically, with Generate Option set to Use Deductions and the Munis Deduction code defined in the Subject Wage Deduction Range fields. 

Reference Deduction and Benefit Master for additional assistance creating the deduction code. 

Reference DE9C Reporting for additional assistance with the DE9C program. 

NOTE: 

There are two Deduction Limit Types for Calendar Year.

Limit Type Y will stop withholding at a defined withholding limit, but will continue recording the gross.  EDD requires you to report "Subject Wages" for UI and SDI.  As noted in their 2023 California Employer's Guide (DE 44) available online here: https://edd.ca.gov/siteassets/files/pdf_pub_ctr/de44.pdf, "Subject wages are the full amount of wages, regardless of the UI and State Disability Insurance (SDI) taxable wage limits."  In order to report accurately, it is imperative for the Limit Type to be Y.

Limit Type Z will stop withholding at a defined wage (earnings) limit, but will NOT continue recording the gross.  If Z is used, your DE9C reporting will only be reporting taxable wage amounts, instead of subject wages amounts.