not subject to CA SDI

[abby]

We have a W2 for a fellow who worked in Kuwait for a year for an employer based in CA, and had SDI wihheld. He has never lived in California, so I'm wondering two things: is he subject to SDI withholding by virtue of his employer being based in CA and if he's NOT subject, what is the method to request a refund?

I'm only seeing a form to claim excess withholding and not finding anything for refunding all withholding.

Thanks for any assistance.

[DTS]

Abby

I'm sorry I don't know the answer to that. I have to call that department tomorrow for another client and can check for you. I'll post what I find out.

I know Sandy does tons of payroll and there isn't anything she hasn't seen, so maybe she'll come to your rescue.

[S T]

Ca SDI

Hi Abby, we haven't seen you in a long time, and it is so good to see you posting.

Thanks Dennis for offering my knowledge

Abby, some Calif employers just don't know how to deal with non Calif Employees. .

Example: I have a a client that is in Kuwait and has been for over 5 years. He has not forgiven his Calif residency, and as such is still subject to Calif Income tax on his Foreign Income that the IRS makes the exclusion. And that employer because that Employee is listed as a Calif Resident has the privilege of paying for the CA SDI.

So I am thinking without looking up the employment rules for SDI, that if your client did not qualify as a Calif resident or is not a Calif resident (from OP maybe a Non Resident), the employer is incorrect in withholding Calif SDI. What state is your client's domicile??

If that holds true, The Calif law is that if the Calif Employer, incorrectly withheld or overwithheld Calif SDI, the "Employee" must go back to the Employer, not the State of Calif. (In this case EDD) The scenario is that then the Employer refunds the monies to the employee and then files a claim on the reports to EDD (State of Calif)

I would be willing to research more for you if needed, so PM me and we will go offline on this issue.

As I said, Glad to have you back posting on the Board,

Sandy

[abby]

Washington resident

Hi Sandy,

Thanks so much for your reply. (I was hoping you might be around, in fact, thinking you'd know something about this). It's true I haven't had much time to visit the board, but I do still 'lurk' at least once a week!

He was working for an army contractor and it just so happens that the contractor is in California - he has no other connection there.

Your answer is sufficient for now - I suspected he might have to go to the employer (so many W-2 issues fall that way) - and the amount might not make it worth his time and trouble, but we can advise him what the proper recourse would be.

Once again, thanks so much, and thanks to DTS, too - if you learn anything interesting on your phone call, please let us know.

[DTS]

Abby,

Sorry I am late getting this to you.

I called EDD awhile ago, (866) 564-4228 and explained your t/p's situation. I was told not subject to SDI and to look over this form, which is the link below. I have not read the 4-page form. Thought I would leave that up to you.

http://www.edd.ca.gov/pdf_pub_ctr/de231eb.pdf

Good luck!