There is an employee that is deceased and their employer is paying them wages/death benefits/bonus - the state is NJ. My question is; are these wages taxable for SDI/SUI. I'm already aware no Federal/State - only SS/Med to be deducted. The employer is trying to get a calculation to make the death payout but they say no SUI/SDI to come out but my system calculating the $$ will not let me block SUI/SDI. Help please.

My understanding from years ago doing this was that only wages for actual work performed were taxed in this situation. You may have to go around the software and do it by hand.