State Disability Insurance (SDI) Rates and Wage Ceilings

Overview

ProPay calculates State Disability Insurance (SDI) and related paid leave taxes for 10 states. These programs provide income replacement to employees who cannot work due to disability, illness, or family caregiving. ProPay automatically applies the correct rates and wage ceilings during payroll processing.

This topic provides a quick-reference summary of all state SDI programs supported in ProPay, including 2026 rates and wage ceilings. For detailed setup instructions, see the individual state topics linked in each section.

Important: SDI rates and wage ceilings change annually. Always verify current rates with the official state sources listed below before processing the first payroll of each calendar year (or fiscal year for New Jersey).

2026 SDI Rates Summary Table

State	Program	Employee Rate	Employer Rate	Wage Ceiling	Setup Location
CA	SDI + PFL	1.3%	0.0%	No limit	Employer > Employer Setup > Screen 3
NY	DBL + PFL	0.5% DBL + 0.432% PFL	None	DBL: $0.60/wk max; PFL: see below	Employer > Employer Setup > Screen 3
NJ	TDI + FLI	0.19% TDI + 0.23% FLI	Varies by employer	EE: $43,300; ER: $44,800	Employer > Employer Setup > Screen 3 + Edit Qtly Rates
HI	TDI	0.5% (max $7.50/wk)	Remainder of premium	Weekly: $1,500.21	Employer > Employer Setup > Screen 3
RI	TDI + JDF	TDI: 1.1%; JDF: 0.0%	JDF: 0.21%	TDI: $100,000; JDF: $29,800	Employer > Employer Setup > Screen 3
OR	WBF	Per-hour rate	Per-hour rate	None	Employer > Employer Setup > Screen 3
WA	PFML	0.808%	0.323%	$184,500	Employer > Employer Setup > Screen 3
CT	PFML	0.5%	0.0%	$184,500	Employer > Employer Setup > Screen 3
CO	FAMLI	0.45%	0.45% (10+ employees)	$184,500	Employer > Employer Setup > Screen 3
NM	WC Assessment	$2.25/employee	$2.55/employee	None	Employer > Employer Setup > Screen 3

Traditional Disability Insurance States

These states have traditional disability insurance programs that provide short-term income replacement for non-work-related illness or injury.

California (CA) - SDI

California's SDI program is funded entirely by employee contributions and covers both disability benefits and Paid Family Leave (PFL).

Item	2026 Value
Employee Rate	1.3%
Employer Rate	0.0%
Wage Ceiling	No limit (Senate Bill 951, effective January 1, 2024)

ProPay setup: Rates are stored in the state tax tables (PRSTATES.DBF). Verify the rate in *Employer > Employer Setup > Screen 3* at the start of each year.

Official resource: California EDD - DE 44 Employer's Guide

For detailed setup instructions, see California SDI.

New York (NY) - DBL + PFL

New York has two separate programs calculated together: Disability Benefits Law (DBL) and Paid Family Leave (PFL).

DBL (Disability Benefits):

Item	2026 Value
Employee Rate	0.5% of wages
Maximum Weekly Deduction	$0.60
Annual Wage Cap	$6,240
Maximum Annual Withholding	$31.20

DBL deductions are capped per pay period:

Pay Frequency	Maximum DBL Deduction
Weekly	$0.60
Biweekly	$1.20
Semi-monthly	$1.30
Monthly	$2.60

PFL (Paid Family Leave):

Item	2026 Value
Employee Rate	0.432%
Maximum Annual Contribution	$411.91

ProPay combines DBL and PFL into a single SDI withholding amount on the paycheck.

Official resource: NY Paid Family Leave - Cost

New Jersey (NJ) - TDI + FLI

New Jersey's program includes Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI). Employee rates are pre-programmed in ProPay; employer rates vary by experience rating and must be entered manually.

Employee Rates (Calendar Year 2026):

Component	Rate	Wage Base
TDI (Temporary Disability)	0.19%	$43,300
FLI (Family Leave Insurance)	0.23%	$43,300
Combined Employee Rate	0.42%	$43,300

Employer SDI:

Item	Value
Employer SDI Wage Base	$44,800
Employer SDI Rate	Varies by employer (see your state notification)

Important: New Jersey assigns employer contribution rates on a fiscal year basis (July 1 to June 30), not a calendar year. Enter quarterly employer SDI rates in *Employer > Employer Setup > Screen 1 > Edit Qtly Rates. If the employer uses private disability insurance, enter a negative number for the SDI rate in Employer > Employer Setup > Screen 3*.

Official resource: NJ Dept of Labor - Rate Info

For detailed setup instructions, see New Jersey SUI and SDI Rates.

Hawaii (HI) - TDI

Hawaii's Temporary Disability Insurance uses a weekly wage base rather than an annual one.

Item	2026 Value
Maximum Employee Deduction	0.5% of weekly wages, up to $7.50/week
Weekly Taxable Wage Base	$1,500.21
Annual Equivalent	$71,448 (approximate, based on 47.6 weeks)
Maximum Annual Withholding	$357.24

Employers may deduct up to half the premium cost from employee wages but no more than 0.5% of weekly wages or $7.50 per week, whichever is less. Employers are liable for the remainder of the plan cost.

Official resource: Hawaii DLIR - TDI Wage Base

For detailed setup instructions, see Hawaii TDI.

Rhode Island (RI) - TDI + JDF

Rhode Island has two programs: Temporary Disability Insurance (TDI, employee-paid) and Job Development Fund (JDF, employer-paid).

Component	Rate	Wage Base
TDI (Employee)	1.1%	$100,000
JDF (Employer)	0.21%	$29,800

ProPay reads RI rates from the state tax tables (PRSTATES.DBF).

Official resource: RI DLT - Employer Tax Unit

Paid Family and Medical Leave States

These states have newer paid leave programs that provide wage replacement for family caregiving, bonding, or medical leave. ProPay handles these through the SDI calculation engine.

Washington (WA) - PFML

Washington's Paid Family and Medical Leave program splits costs between employers and employees.

Item	2026 Value
Total Premium Rate	1.13%
Employee Share	71.43% of premium (0.808% of wages)
Employer Share	28.57% of premium (0.323% of wages)
Wage Ceiling	$184,500 (matches Social Security wage base)

Businesses with fewer than 50 employees are exempt from the employer portion. Tips are excluded from the wage calculation.

Official resource: WA Paid Leave

Connecticut (CT) - PFML

Connecticut's Paid Family and Medical Leave program is funded entirely by employee contributions.

Item	2026 Value
Employee Rate	0.5%
Employer Rate	0.0%
Wage Ceiling	$184,500 (matches Social Security wage base)

This program started in 2022.

Official resource: CT Paid Leave

Colorado (CO) - FAMLI

Colorado's Family and Medical Leave Insurance program splits costs between employers and employees.

Item	2026 Value
Employee Rate	0.45%
Employer Rate	0.45% (only for employers with 10+ employees)
Wage Ceiling	$184,500 (matches Social Security wage base)

This program started in 2023. Employers with fewer than 10 employees are not required to pay the employer portion but may opt in.

Official resource: CO FAMLI

Other SDI-Type Programs

Oregon (OR) - Workers Benefit Fund (WBF)

Oregon's WBF assessment is unique because it is calculated per hour worked, not as a percentage of wages.

Item	2026 Value
Employee Rate	0.9 cents per hour worked
Employer Rate	0.9 cents per hour worked
Wage Ceiling	None

For hourly employees, ProPay multiplies actual hours worked by the rate. For salaried employees, ProPay uses 2,080 hours per year divided by the number of pay periods.

Note: Oregon also has a separate Paid Leave program and transit taxes (TriMet, Lane Transit) that are set up through local taxes, not through SDI settings. See the Special Taxes Summary Table for those rates.

Official resource: Oregon DCBS - WBF

New Mexico (NM) - Workers Compensation Assessment

New Mexico's workers compensation assessment is a per-employee charge rather than a percentage of wages.

Item	2026 Value
Employee Assessment	$2.25 per employee working on the last day of the quarter
Employer Assessment	$2.55 per employee working on the last day of the quarter

ProPay reads NM rates from the state tax tables (PRSTATES.DBF).

Official resource: NM Taxation and Revenue - Workers Compensation

Multi-State Employees

ProPay tracks SDI withholding for employees who work in multiple states. The software supports up to 5 states per employee (one primary state plus four additional states). Each state's SDI wages and withholdings are tracked separately for accurate W-2 reporting.

SDI applies based on the employee's SUI state (the state where unemployment insurance is paid), which is set in the employee record.

Related Programs Set Up as Local Taxes

Some state paid leave programs are configured through ProPay's local tax system rather than through SDI settings:

State	Program	Setup Location
MA	Paid Family and Medical Leave (PFML)	Local Taxes (EE: 0.46%, ER: 0.42%)
MA	Employer Medical Assistance Contribution (EMAC)	Employer > Employer Setup > Screen 3 SDI rate
OR	Paid Leave Oregon	Local Taxes (EE: 0.60%, ER: 0.40%)
WA	WA Cares Fund (long-term care)	Local Taxes ($0.58 per $100 of earnings)

See the Special Taxes Summary Table for complete rates and setup details for these programs.

Where to Update SDI Rates in ProPay

Most SDI rates are stored in ProPay's state tax tables and are updated automatically with each annual tax table update. However, some rates require manual configuration:

Employer-specific SDI rates (NJ, RI): Go to *Employer > Employer Setup > Screen 3* and enter the rate from your state notification.
Quarterly employer SDI rates (NJ): Go to *Employer > Employer Setup > Screen 1 > Edit Qtly Rates* and enter the rate for each quarter.
Private insurance (NJ): Enter a negative number in the SDI rate field in *Employer > Employer Setup > Screen 3*.
WBF hourly rate (OR): Verify the per-hour rate in *Employer > Employer Setup > Screen 3* matches the current state rate.