State Disability Insurance (SDI) — Payroll Definition

State Disability Insurance (SDI) paystub meaning: State-mandated insurance for short-term disabilities — applies in CA, NY, NJ, RI, and HI. Codes: SDI / CASDI.

State-mandated insurance for short-term disabilities — applies in CA, NY, NJ, RI, and HI.

SDI is a state-run insurance program that provides short-term disability benefits to workers who cannot work due to non-work-related illness, injury, or pregnancy. Only 5 states mandate SDI: California (1.3% of all wages in 2026 — the wage cap was eliminated in 2024), New York (0.5%), New Jersey (variable), Rhode Island (1.1%), and Hawaii (0.5%). In California, SDI also covers Paid Family Leave (PFL). This deduction appears on your paystub as SDI or CASDI.

A deduction can be pre-tax, post-tax, voluntary, or required. Its label alone does not establish how it affects taxable wages, so check the plan document, employee election, payroll policy, and year-to-date amount.

When this term appears on a statement, read its label, current amount, year-to-date amount, pay-period context, and any adjacent rate or hours together. Resolve a mismatch with the original issuer or the cited authority rather than changing a record to force a preferred result.