Drake Accounting – SDR Set Up

Last Updated: September 29, 2026

State Disability Rates

There are five states – Hawaii, California, New Jersey, New York and Rhode Island – and Puerto Rico who have State Disability Rate (SDR).

To setup SDR:

1. Go to Firm > Rates & Withholding Setup > State Setup.

2. Select a state from the States list.

3. Either select <Global Rates> from the Client drop menu to enter state rates and limits that are not client-specific or select a client from the Client drop menu to enter client-specific rates and withholding limits.

4. Under State Disability Rate, enter the rate of the state disability deduction.

   • An 8% tax rate should be entered as 0.08.

   • Only CA, HI, NJ, NY, RI, and Puerto Rico have state disability withholding that is required to be paid by the employee.

5. Click Save.