20 December 2016

2017 state disability insurance rates and limits

Six jurisdictions — California, Hawaii, New Jersey, New York, Puerto Rico and Rhode Island — operate state disability insurance (SDI) programs. Depending on the state or jurisdiction, the employee may pay all of the contributions to the program through wage withholding, or the employer and the employee may share the cost of the insurance coverage.

The chart below shows the state SDI rates and taxable wage limits for 2017 based on information currently available.

State disability insurance wage base and rates
Tax year 2017

State/jurisdiction

Employee
contribution

Employer
contribution

Taxable wage limit if applicable (1)

California

0.9%

None

$110,902

California source

Hawaii

50% of cost but not more than 0.5% of covered weekly wages up to maximum. Weekly contribution of $5.12

Difference between cost and worker's contribution

$1,023.31 (weekly)

Hawaii source

New Jersey

0.24% (3)

New employers pay 0.5% of taxable wages if in state plan, otherwise experience rating applies (2)

$33,500

New Jersey source

New York

0.5% with contribution limit of:

$0.14 daily
$0.60 weekly
$1.20 biweekly
$1.30 semimonthly
$2.60 monthly (4)

Balance of costs over employee contributions necessary to provide benefits

None

New York source

Puerto Rico

 0.3% (5)

0.3% (5)

$ 9,000 (5)

11 LPRA§208

Puerto Rico source

Rhode Island

 1. 2%

None

$68,100

Rhode Island source

 

(1) Represents maximum annual earnings unless another period is specified. Where employer contribution is stated as a percentage, the taxable wage limit applies.

(2) New Jersey. For 2017, employer disability experience rates range from 0.1% to 0.75%.

(3) California. Effective January 1, 2017, employees pay at 0.10% for family leave insurance (FLI), up from 0.08% for calendar year 2016.

(4) New York. A FY 2016-17 budget bill (CH 54) will establish paid family leave to be funded by employee payroll deduction through the state disability insurance program. On June 1, 2017, and each September 1 thereafter, the NY Workers' Compensation Board will set the amount of the family leave employee contribution.

(5) Puerto Rico. Not anticipated to change for 2017.

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Contact Information
For additional information concerning this Alert, please contact:
 
Employment Tax Services Group
Debera Salam(713) 750-1591

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Other Contacts
Employment Tax Services Group
Gregory Carver(214) 969-8377
Richard Ferrari(212) 773-5714
Kenneth Hausser(732) 516-4558
Kristie Lowery(704) 331-1884
Christina Peters(614) 232-7112
Debbie Spyker(720) 931-4321

Document ID: 2016-2181