New York State Disability Insurance: The Secret Benefits

If you live and work in New York, you may qualify for disability benefits if an injury or illness prevents you from performing your job duties.

Disability benefits are cash payments that replace part of your lost income while you recover from your condition.

New York State Disability Insurance
New York State Disability Insurance | Photo courtesy: Wikipedia

However, the same disability benefits law does not cover all workers, and your situation may affect the amount and duration of benefits, which can vary.

This article will cover everything you need to know about New York State disability insurance, including coverage details, application procedures, and the latest changes and updates for 2024.

What is New York State Disability Insurance?

An infographic showing the steps required on how to apply for disability benefits in New York State Insurance fund by Michael Ndenga
An infographic showing the steps required on how to apply for disability benefits in New York State Insurance fund by Michael Ndenga

New York State disability insurance is a mandatory program that provides weekly cash benefits to workers who suffer from off-the-job injuries or illnesses that prevent them from working.

The New York State Workers’ Compensation Board (WCB) administers the program, which is funded by employers and employees through payroll deductions.

The program covers most private-sector employees in New York, as well as some public employees, such as state and local government workers, school district employees, and domestic workers.

However, some workers are exempt from the program, such as federal employees, railroad workers, clergy, and farm workers.

Workers’ compensation insurance covers medical expenses and provides benefits for on-the-job injuries or illnesses. The program does not provide this coverage.

How Much are the Benefits and How Long Do They Last In New York State Disability Insurance?

The amount of disability benefits you can receive depends on your average weekly wage for the last eight weeks before you became disabled.

The benefit rate is 50% of your average weekly wage, up to a maximum of $170 per week in 2024.

You are subject to Social Security and Medicare taxes on the benefits, and other income you receive, such as sick pay, unemployment benefits, or workers’ compensation benefits, may reduce them.

In any 52-consecutive-week period, the company pays benefits for a maximum of 26 weeks of disability.

You cannot collect disability benefits and Paid Family Leave benefits at the same time.

The total combined disability leave and Paid Family Leave in any 52 weeks may not exceed 26 weeks.

How to Apply for Disability Benefits?


To apply for disability benefits, you need to file a claim with your employer’s disability benefits insurance carrier or the State Insurance Fund, if your employer is self-insured.

You need to complete and submit a Notice and Proof of Claim for Disability Benefits (Form DB-450) within 30 days of becoming disabled.

You also need to obtain a medical certification from your health care provider that confirms your disability and the expected duration of your condition.

Your employer and your insurance carrier will review your claim and determine your eligibility and benefit amount.

You should receive your first payment within four days of the eighth consecutive day of your disability if we approve your claim.

If your claim is denied, you have the right to request a review by the WCB within 26 weeks of the denial.

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What are the Latest Changes and Updates in 2024?

In 2024, there are some important changes and updates that affect New York State disability insurance. Here are some of them:

  • The maximum benefit amount has increased from $150 per week in 2023 to $170 per week in 2024, following the annual adjustment based on the New York State average weekly wage.
  • The minimum employee contribution rate has decreased from 0.6% of wages in 2023 to 0.5% of wages in 2024, up to a maximum of $0.85 per week.
  • The WCB has launched a new online portal for filing and managing disability benefits claims, called eClaims. The portal allows workers, employers, and insurance carriers to submit and access claim information electronically, reducing paperwork and processing time.
  • The WCB has also issued new guidelines and regulations for disability benefits plans, which are alternative arrangements employers can offer their employees instead of the standard disability benefits insurance. The plans must provide equal or better benefits than the statutory requirements and must be approved by the WCB. The new guidelines and regulations aim to ensure the adequacy and fairness of the plans and to protect the rights and interests of the workers.


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What is SDI for New York?

SDI for New York stands for state disability insurance tax, which is a payroll deduction that funds the NY state disability insurance program.

The SDI tax rate is 0.5% of an employee’s wages, up to a maximum of $0.85 per week in 2024.

The SDI tax is deductible as a state and local tax if you itemize your deductions on Schedule A.

READ MORE: Is Disability Insurance Tax Deductible? Unveiling the Complexities of Tax and Protection

What category is NY SDI?

NY SDI is a category of state and local tax that is reported in box 14 of your W-2 form.

When entering your W-2 information in TurboTax, you should select the description “NY Nonoccupational Disability Fund tax” for NY SDI.

This will flow to line 5a on Schedule A and will be deductible if you itemize your deductions.


New York State disability insurance is a valuable program that helps workers cope with the financial impact of off-the-job injuries or illnesses.

However, the program has its own rules and requirements that workers need to be aware of and follow.

If you have any questions or concerns about your disability benefits, you can contact the WCB, your employer, or your insurance carrier for more information and assistance.

You can also visit the WCB website for more resources and guidance. Remember, your health and well-being are important, and you deserve to receive the benefits you are entitled to.

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