Payroll Tax Limit

I'd be happy to clarify the California SDI payroll limit for you in QuickBooks Enterprise Desktop, Mop56.

The negative number, -9,999,999.45, in the SDI payroll item's Limit column is not an error. This value is a placeholder automatically inserted.

Starting in 2024, California removed the annual wage cap for SDI contributions. The tax is now withheld from all employee wages, making the limit "unlimited."

Now, QuickBooks uses this specific negative figure to signal the payroll calculation system to ignore any limit and calculate SDI based on the employee's total gross pay. (This field is not editable.)

However, you must have the latest tax table to ensure correct calculation.

To check:

1. Go to the Employees menu.
2. Select Get Payroll Updates.
3. Check the box for Download entire payroll update.
4. Click Download Latest Update.

To confirm the update:

1. Press the F2 key (or Ctrl + 1).
2. Look in the bottom left for the Payroll Tax Table Version.
3. Confirm the version is the current, up-to-date release.

If you have any questions before you proceed, please let me know in the comments.