What the taxes taken from your paycheck pay for

This page is general information, not tax or legal advice. Rules for immigration and Social Security are complex; talk to a tax professional or immigration lawyer about your own case.

What are the lines on my pay stub?

Most California pay stubs show some or all of these deductions taken from your pay:

Sources: EDD rates, Social Security.

Your employer also pays some taxes you will not see taken from your pay. Unemployment Insurance (UI) and the Employment Training Tax are paid by the employer, not taken from workers (EDD).

What is SDI, and why is it taken from my check?

SDI is California's State Disability Insurance. Workers pay for it through a deduction from each paycheck (EDD). In 2026 it is 1.3% of your wages, up from 1.2% in 2025. Since January 1, 2024, there is no yearly limit, so it is taken from all of your wages (EDD rates).

What it pays for. SDI funds two programs (EDD):

• Disability Insurance: part of your pay when you cannot work because of an illness, injury or pregnancy that is not from your job
• Paid Family Leave: part of your pay when you take time off to care for a seriously ill family member, bond with a new child, or handle certain needs when a family member is deployed in the military

Your status does not matter. EDD says citizenship and immigration status do not affect eligibility for SDI (EDD, DE 2320). You need at least $300 in wages that had SDI taken out during the base period (EDD). That means the 1.3% you pay can come back to you when you need it.

What do Social Security and Medicare pay for?

Social Security pays monthly benefits when you retire, if you become disabled and cannot work, and to your family if you die. Medicare pays for health care, mostly after age 65.

How you earn credits. In 2026, you earn one credit for every $1,890 of covered earnings, up to 4 credits a year (Social Security). You need 40 credits for retirement benefits. Disability benefits need fewer credits, depending on your age.

Your earnings must be reported under your own name and Social Security number for you to get credit for them (Social Security). Check your record. You can usually correct errors only within 3 years, 3 months and 15 days after the end of the year, with some exceptions. Have W-2s or pay stubs ready, and use a my Social Security account or call 1-800-772-1213 (Social Security).

Status matters for being paid. Social Security pays monthly benefits to a person in the United States only for months they are a citizen, a national, or a lawfully present noncitizen (Social Security POMS RS 00204.010). Social Security calls this a rule about payment, not about whether you earned the benefit. If your status changes later, ask Social Security or a lawyer how that affects you.

What about income tax?

Federal and California income tax taken from your check is an advance payment on the tax you owe for the year. When you file a tax return, the taxes already taken count toward what you owe. If too much was taken, you can get a refund (IRS Publication 505). You can file with an ITIN if you do not have a Social Security number (IRS, ITIN).

• Your federal withholding is set by the W-4 you gave your employer, and your California withholding by the DE 4. If you never gave a DE 4, California withholding is set as if you were single with zero allowances (EDD rates).
• Filing a return can also get you tax credits like CalEITC. See CalEITC and Young Child Tax Credit with an ITIN and Free tax help.

What about unemployment?

Unemployment Insurance is paid for by your employer, not taken from your check (EDD). Unlike SDI, unemployment does depend on immigration status and work authorization. See Unemployment after being fired or quitting.

What if I am paid in cash with no deductions?

If no taxes are taken out, your employer may be treating you as a contractor or not reporting your pay. That can mean no SDI and no Social Security credits for that work. A clinic can help you check whether you were really an employee. See Your rights at work.

What mistakes should I avoid?

• Not checking your stub. Mistakes happen. Compare each line every few months.
• Paying SDI and never using it. If you are out sick or caring for family, apply.
• Waiting too long to fix Social Security errors. The correction window is limited.
• Fixing a past number problem without legal advice. Talk to an immigration lawyer first.
• Skipping your tax return. You may be owed a refund or credits.

Who can help?

These are free public offices and nonprofit clinics. Contact them to confirm hours, languages and openings. Being listed here is not a referral or a promise of service.

• EDD, State Disability Insurance: 1-800-480-3287, Spanish 1-866-658-8846 (EDD contact)
• Social Security: 1-800-772-1213, TTY 1-800-325-0778 (Social Security)
• Free tax help: see Free tax help and filing with an ITIN
• Legal Aid at Work, Workers' Rights Clinic: free and confidential for people within its income limits or age 60 and over. East Palo Alto line: (415) 404-9093. Clinic details

The money you pay in is real. Knowing what it buys helps you claim what is yours.

Questions people ask

Can I stop paying SDI if I do not have papers? No. If you are an employee in California, it is taken from your wages. The good news is you can use it, whatever your status.

Why did my SDI go up in 2026? EDD set the rate at 1.3% for 2026, up from 1.2% in 2025.

I earn a lot. Does SDI stop at some point? Not since 2024. It applies to all wages. Social Security stops at $184,500 of wages in 2026.

What happens to my Social Security if I leave the country? Benefits depend on your credits, your status and other rules we did not cover here. Ask Social Security or a lawyer about your case before you decide.

Is there a pay stub decoder I can print?