To which agency must an employer remit State disability taxes withheld from employee wages?

The correct answer is the Employment Development Department. Employers in California are required to remit state disability insurance (SDI) taxes, which are withheld from employees' wages, to this specific agency. SDI provides benefits to workers who are unable to work due to a non-work-related illness or injury, and it is funded through these tax withholdings.

The Employment Development Department oversees the administration of this program, ensuring that funds are collected and distributed appropriately to support employees during periods of temporary disability. This centralization within the Employment Development Department streamlines the process and provides a clear authority for both employers and employees regarding disability benefits.

The other agencies mentioned do not handle state disability taxes specifically. The Internal Revenue Service manages federal tax collection, including income and employment taxes. The Department of Labor focuses on federal labor laws and regulations, and the State Tax Commission deals primarily with state tax issues but does not directly oversee SDI tax withholding.