New York State Disability Insurance

Overview

New York State Disability Insurance (SDI) provides income replacement for employees who are unable to work due to off-the-job injuries or illness. The program is administered through the New York State Insurance Fund (NYSIF) or private insurance carriers.

For more information, visit: https://www.wcb.ny.gov/content/main/DisabilityBenefits/employee-disability-benefits.jsp

2026 Benefit Rates

Covered workers are entitled to:

Benefit amount: 50% of average weekly wage for the last eight weeks worked
Maximum weekly benefit: $170 per week
Maximum duration: 26 weeks of disability during a 52-week period

All benefits are subject to Social Security and Medicare taxes.

Employee Contributions

Employers are allowed, but not required, to collect contributions from employees to offset the cost of providing benefits.

Contribution rate: 0.5% of taxable wages Maximum weekly contribution: $0.60 per week

This amount is withheld automatically from the employee's paycheck when SDI is enabled.

Employer Contributions

About NYSIF

The New York State Insurance Fund (NYSIF) is a non-profit state agency consisting of two separate funds:

Workers' Compensation Fund (created 1914): Insures against occupational injury and disease
Disability Benefits Fund (established 1949): Insures against off-the-job sickness or injury

NYSIF is a self-supporting insurance carrier that competes with private insurers in the workers' compensation and disability benefits markets.

For more information, visit: https://www.ny.gov/agencies/new-york-state-insurance-fund

Maximum employer contribution for 2026

Note: The values below reflect the Paid Family Leave (PFL) employee contribution rate and cap, not the employer's Disability Benefits Law (DBL) contribution. For DBL employer costs, consult your NYSIF or private carrier rate notification.

PFL Employee Rate: 0.388% of employee's gross weekly wages
PFL Annual Cap: $354.53 per year

Setting Up in ProPay

Entering the employer SDI contribution rate

If NY is the home state:

Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
In the SDI section, enter the employer SDI contribution rate.

If NY is not the home state:

Go to Employer > Employer Setup > Screen 5 (Multi-State Settings).
Enter the employer SDI contribution rate for NY.

Printing Reports

Go to Client Functions > Tax Returns.
Select NY for state.
Choose the report you need:

NYSDI.TAX - Quarterly Report
NYSDYYR.TAX - Annual Report

Note: These forms are currently designed for NYSIF. Additional reports for other carriers will be implemented in the near future.

Important Notes

ProPay automatically calculates employee withholdings when SDI is enabled
Employer contribution rates may vary by carrier
Both employee and employer portions are required
Reports must be filed quarterly and annually