In PayWindow, the SDI Employer / Employee code used is shared for the California as Employer SDI / Employee CA ETT. Under certain circumstances an employee may be exempt from SDI. Do not use the Exempt from tax checkbox that you see below:

 

 

If you do it will also mark the employee as exempt from the CA ETT. Instead use this work around for this employee when paying the employee that is exempt. After the taxes are calculated when entering data on pay day, simply enter zero in the SDI deduction as seen below and press the Tab key to recalculate the Net Pay before saving the transaction with the Save and Close button.