The Short Answer
If you changed jobs mid-year and had more than one California employer, you may have had more SDI withheld than the legal annual maximum—and that excess is yours to claim back. But there is a hard cutoff: this only applies to tax years before 2024. Starting January 1, 2024, California eliminated the SDI wage cap entirely (SB 951), so overpayments from multiple employers no longer occur for 2024 and beyond.
For eligible prior-year returns, the process is straightforward: add up the SDI shown in Box 14 of every W-2 you received for that year, subtract the annual maximum contribution, and enter the excess as a refundable credit on your California Form 540. Most people can complete the calculation in under five minutes using the worksheet in the Form 540 instructions.
What Is CASDI / SDI Tax?
California State Disability Insurance (SDI)—labeled CASDI on most paystubs—is a mandatory employee-paid payroll tax that funds two state programs: State Disability Insurance for workers who cannot work due to a non-work-related illness, injury, or pregnancy, and Paid Family Leave (PFL) for workers who need time off to bond with a new child or care for a seriously ill family member.
Unlike Social Security or Medicare taxes, employers pay nothing into SDI. The entire contribution comes from employees' paychecks. Historically, the tax was calculated as a flat percentage of wages up to an annual ceiling—once your earnings crossed that threshold with a given employer, SDI withholding stopped for the remainder of the year. That ceiling is what created the overpayment opportunity for mid-year job changers.
CASDI stands for California State Disability Insurance. You may see SDI, CASDI, or CA SDI on different documents—they all refer to the same tax and the same program. If your W-2 labels it something different (such as "CA SUI/SDI"), that is still the SDI amount for your calculation.
When Does SDI Overpayment Happen?
An SDI overpayment occurs when the total SDI withheld across all your employers for the year exceeds the annual maximum contribution. There are two ways this happens.
Scenario 1: Multiple Employers (Most Common)
When you leave one job and start another, each employer withholds SDI independently—neither one knows what the other has already taken out. Each treats your start date with them as if you will work there all year and stops withholding only after your earnings with them hit the wage limit. If your combined wages across both employers exceed the annual limit, your total SDI withholding will exceed the maximum, and you are owed the difference.
Quick example (2023 tax year): You earned $90,000 at Employer A (SDI withheld: $810) and $75,000 at Employer B (SDI withheld: $675). Your total SDI withholding is $1,485. The 2023 maximum was $1,378.48. You overpaid by $106.52.
Scenario 2: Single Employer Error
If one employer withholds more SDI than the annual maximum due to a payroll system error, that employer is responsible for issuing a refund directly to you. This is less common and handled differently—see Special Situations below.
Both scenarios above only apply to tax years before 2024. For 2024 forward, there is no wage cap, so no excess SDI can accumulate regardless of how many employers you had.
The 2024 Rule Change (SB 951)
California Senate Bill 951 (Chapter 878, Statutes of 2022) eliminated the SDI taxable wage limit effective January 1, 2024. Before this change, SDI was only withheld on the first $153,164 of wages in 2023 (at 0.9%). Now SDI is withheld on every dollar you earn—there is no cap.
| Feature | 2023 and Earlier | 2024 and Later |
|---|---|---|
| Annual wage cap | Yes (varied by year) | None (unlimited) |
| Maximum contribution | Yes (fixed dollar cap) | No limit |
| Excess SDI from multiple employers | Possible; refundable | Not possible |
| SDI tax rate | Varied (0.9%–1.2%) | Flat rate set annually by EDD |
The practical consequence: if you had multiple California employers in 2024 or any later year, you will not have excess SDI to claim, no matter how many jobs you held. The overpayment mechanism simply does not exist anymore.
If you changed jobs in 2021, 2022, or 2023 and never claimed excess SDI, you may still be within the three-year filing window. Check the deadlines section to see if you still have time.
How to Calculate Your Excess SDI Refund (Pre-2024)
The calculation takes four inputs: your W-2s, the correct year's maximum, a simple subtraction, and the Form 540 worksheet to report it. Here is the process step by step.
- Gather all W-2s for the tax year. You need every W-2 from every California employer that year—including any you may have overlooked. If you misplaced one, contact that employer's payroll department or access it through the IRS's online tools.
- Locate your SDI amount on each W-2. Find Box 14 on each form. The label may say SDI, CASDI, CA SDI, or CA SUI/SDI. Add up all those amounts. Do not include amounts labeled SUI, VPDI, or anything else that is not SDI.
- Look up the annual maximum for your tax year. Use the table below—each year has a different rate and wage cap, so using the wrong year's figure is one of the most common errors.
- Subtract the maximum from your total. If the result is positive, that is your excess. If it is zero or negative, there is no overpayment to claim.
- Complete the Excess SDI/VPDI Withholding Worksheet. This worksheet is in the Form 540 instruction booklet. It formalizes the calculation and produces the number you enter on your return.
| Tax Year | SDI Rate | Wage Limit | Maximum Contribution |
|---|---|---|---|
| 2023 | 0.9% | $153,164 | $1,378.48 |
| 2022 | 1.1% | $145,600 | $1,601.60 |
| 2021 | 1.2% | $128,298 | $1,539.58 |
| 2020 | 1.0% | $122,909 | $1,229.09 |
| 2019 | 1.0% | $118,371 | $1,183.71 |
Worked Example (2022 Tax Year)
You worked at two employers in 2022:
- Employer A (Jan–June): Wages $80,000, SDI withheld $880.00
- Employer B (July–Dec): Wages $85,000, SDI withheld $935.00
Total SDI withheld: $880 + $935 = $1,815.00
2022 annual maximum: $1,601.60
Excess SDI: $1,815.00 − $1,601.60 = $213.40
You would enter $213.40 as a refundable credit on Form 540, Line 74. It either reduces tax you owe or adds directly to your refund.
The excess SDI amount is a refundable credit. This means it can reduce your California tax liability below zero—you receive the remainder as a cash refund even if you owe no California income tax.
How to Claim Your Refund
There are three distinct methods, and which one applies depends on whether you file a California income tax return and how many employers you had.
| Your Situation | Correct Method | Where to Report |
|---|---|---|
| You file a California tax return (most people) | Excess SDI/VPDI Worksheet + Form 540 | Form 540, Line 74 |
| You do not file a California return | Form DE 1964 filed with EDD | Separate EDD claim |
| One employer withheld too much (payroll error) | Contact employer directly first | Employer corrects or issues refund |
Method 1: California Tax Return (Form 540 or 540NR)
This is the correct path for the vast majority of people. Complete the Excess SDI/VPDI Withholding Worksheet in the Form 540 instruction booklet, then carry the result to Line 74 of Form 540 (or the equivalent line on Form 540NR for part-year and nonresident filers). You do not need to attach additional documentation—your W-2s are your supporting records if the Franchise Tax Board ever has questions.
If you are filing an amended return to claim excess SDI you missed in a prior year, use Form 540X. Reference the Excess SDI worksheet to calculate the amount.
Method 2: Form DE 1964 (Non-Filers Only)
Form DE 1964 exists for a narrow group: workers who had SDI withheld but are not required to file a California income tax return. If you are in this situation, submit DE 1964 directly to the Employment Development Department. You can obtain the form from the EDD website.
This is the single most common error in this process. If you are required to file a California income tax return—even a simple one—you must claim the excess SDI on that return, not on DE 1964. Filing both creates duplicate claims and significantly delays processing.
Method 3: Employer Refund Request
If a single employer is responsible for the entire excess (due to a payroll error), contact their payroll or HR department. Under California law, employers who over-withhold SDI are required to refund the excess or issue a corrected W-2. If they fail to act, contact the EDD for assistance before filing a claim on your own return.
Married Filers: Calculating Excess SDI Separately
If you are married and file a joint California return, you must calculate excess SDI independently for each spouse. The annual maximum applies per individual taxpayer, not per household.
Incorrect approach: Add both spouses' SDI together and compare to one maximum.
Correct approach: Run the calculation twice—once using only Spouse A's W-2s against the annual maximum, and once using only Spouse B's W-2s. Enter each result in the appropriate column of the Excess SDI/VPDI Worksheet.
The Form 540 worksheet includes separate columns for each spouse. Follow the worksheet line by line rather than calculating outside it—this prevents errors that trigger FTB correspondence.
Common Mistakes to Avoid
- Using the wrong year's maximum contribution. Each year has a different rate and wage cap. Plugging in 2022's figures when calculating 2021 produces an incorrect excess amount. Always confirm the exact figures for your tax year from the official FTB or EDD tables.
- Including non-SDI amounts from Box 14. Box 14 can contain many different items (SUI, VPDI, union dues, health premiums). Only the amount explicitly labeled SDI, CASDI, or CA SDI belongs in your calculation.
- Filing Form DE 1964 instead of Form 540. If you file a California income tax return, use the return. DE 1964 is strictly for non-filers.
- Combining spouses' withholding on a joint return. Each spouse has their own annual maximum. Combine them and your credit amount will be wrong.
- Forgetting a W-2. Every California employer must be included. Missing one means your total SDI figure will be understated.
- Waiting too long to file. The three-year statute of limitations is real—see the next section.
- Assuming 2024 or later qualifies. It does not. There is no excess SDI for 2024 onward.
Deadlines and Statute of Limitations
You generally have three years from the original due date of the return (including extensions) to file an amended return or stand-alone claim for a refund. For most taxpayers, the original due date is April 15.
| Tax Year | Original Due Date | Typical Refund Deadline | Status (as of July 2026) |
|---|---|---|---|
| 2023 | April 15, 2024 | April 15, 2027 | Open |
| 2022 | April 15, 2023 | April 15, 2026 | Closing—act immediately |
| 2021 | April 15, 2022 | April 15, 2025 | Closed |
| 2020 and earlier | Various | Passed | Closed |
As of July 2026, the window to claim excess SDI for the 2022 tax year is on the verge of closing (April 15, 2026 has passed). If you believe you are owed a refund for 2022, verify with a tax professional immediately whether any extension or exception applies to your situation. Do not assume you still have time.
Extensions granted for filing the original return do not automatically extend the refund claim deadline in the same way. If you requested an extension for a prior year, the calculation of your deadline may differ. When in doubt, file as soon as possible or consult the Franchise Tax Board.
Special Situations
Voluntary Plan Disability Insurance (VPDI)
Some larger employers opt out of the state SDI program in favor of an EDD-approved private plan, called a Voluntary Plan (VPDI). If you worked for a VPDI employer and a state SDI employer in the same year, or two different VPDI employers with different plans, the excess calculation follows similar logic—but the worksheet has separate columns for SDI and VPDI. Check your W-2 carefully: VPDI is usually labeled "VPDI" in Box 14, while state SDI is labeled "SDI" or "CASDI."
Part-Year Residents and Non-Residents
If you lived in California for only part of the year, or worked in California while residing elsewhere, only wages earned in California are subject to SDI tax. File Form 540NR and use the corresponding Excess SDI/VPDI Worksheet for nonresidents. The mechanics are the same, but your W-2 Box 16 (state wages) rather than Box 1 (total wages) drives the analysis. Consider consulting a CPA familiar with California nonresident taxation.
Employer Payroll Errors
If you had only one employer and the excess appears to stem from a payroll error—SDI withheld on wages clearly above the annual limit—contact that employer's payroll department before filing. They can issue a corrected W-2C and reimburse you directly, which avoids the amended-return process. If they are unresponsive, contact the EDD's employer compliance unit.
Frequently Asked Questions
Can I get a refund for excess CASDI withholding if I had multiple employers?
Yes, but only for tax years before 2024. If you had two or more California employers in a single year and your combined SDI withholding exceeded that year's maximum contribution, you can claim a refund of the excess on your California tax return. For 2024 and later, the SDI wage cap was eliminated by SB 951, so excess SDI refunds from multiple employers are no longer possible.
How do I calculate excess SDI withholding from multiple W-2s?
Add the SDI amounts shown in Box 14 of all your W-2s for the tax year. Then find the annual maximum contribution for that year (for example, $1,378.48 for 2023). Subtract the maximum from your total. Any positive result is your excess SDI—claimable as a refundable credit on Form 540. This only applies to tax years before 2024.
Which form do I use to claim a California SDI refund?
Most taxpayers claim the excess SDI credit on Form 540 (or 540NR) using the Excess SDI/VPDI Withholding Worksheet in the form instructions. Form DE 1964 is reserved only for individuals who are not required to file a California income tax return at all.
Did California eliminate the SDI wage cap?
Yes. Effective January 1, 2024, SB 951 removed the SDI taxable wage limit entirely. SDI is now withheld on all wages with no annual ceiling, which means the multiple-employer overpayment scenario no longer arises for 2024 or later tax years.
What is the statute of limitations for claiming an excess SDI refund?
You generally have three years from the due date of the original return (including extensions) to file an amended return or claim for refund. For the 2022 tax year—with an original due date of April 15, 2023—the deadline was typically April 15, 2026. The 2023 tax year window remains open until approximately April 15, 2027.
Can I claim excess SDI if I only had one employer?
If a single employer withheld more than the annual SDI maximum due to a payroll error, request a refund directly from that employer first—they are required to correct it. If they are unable or refuse, contact the EDD for guidance. You may ultimately be able to claim the excess on your return, but the process is more involved than the standard multiple-employer scenario.
How do I handle excess SDI on a joint California return?
Calculate excess SDI separately for each spouse. The Excess SDI/VPDI Withholding Worksheet in the Form 540 instructions walks through each spouse's figures independently. Combining both spouses' SDI into a single calculation is a common error that produces an incorrect credit amount.
Where exactly do I find the SDI amount on my W-2?
Look in Box 14 of your W-2. It may be labeled "SDI", "CASDI", "CA SDI", or "CA SUI/SDI". Some employers use a custom abbreviation. If the label is unclear, contact your employer's payroll or HR department and ask them to confirm which line item represents your California SDI withholding.
Key Takeaways
- Excess SDI refunds only exist for tax years before 2024. SB 951 eliminated the wage cap starting January 1, 2024.
- Multiple employers are the primary cause of overpayment. Each employer withholds independently against its own copy of the annual cap.
- Claim the excess on Form 540, not Form DE 1964—unless you do not file a California return at all.
- Use the correct year's maximum. Rates and caps varied each year from 2019 to 2023; using the wrong figure produces an incorrect credit.
- Married couples must calculate separately. Do not combine spouses' SDI withholding into a single calculation.
- The three-year statute of limitations is real. For tax year 2023, the window closes around April 15, 2027. Act before it lapses.
- Single-employer overwithholding goes to the employer first. Contact their payroll department before filing anything with the state.
Use the California Paycheck Calculator to see SDI withholding on your current pay. For hourly workers, try the California Hourly Paycheck Calculator. If you are filling out a new DE 4, see our California DE 4 Form Guide for step-by-step withholding instructions.