Overview

This article is about how to enter in QuickBooks Desktop the employer rate for New York State Disability Insurance (NY SDI). The State of New York requires that all employers with employees working in New York purchase disability insurance through a private carrier.

Even though the insurance is through a private carrier, the State of New York has rules regarding this coverage.

QuickBooks Desktop Payroll Assisted does not support this tax.

Assumptions

You are an employer in the State of New York and are required to purchase SDI.

Details

The QuickBooks Desktop program automatically creates items for the New York SDI employee contribution and the company contribution. The employee rate is automatically entered as .5%. Company rates are provided by the carrier, and must be entered by you (the customer) based upon notification from the carrier. After the insurance is purchased and you have the company rate, you can enter this rate in the NY SDI item in the Payroll Item list. QuickBooks Desktop prompts you to set up the New York SDI Payroll item when you first enter an employee.

The employee rate cannot be edited. Employees contribute .5% of their gross pay towards the cost of this insurance, not to exceed $.60 a week. This helps the employer with the cost of the insurance. QuickBooks Desktop automatically stops calculating amounts over $.60 a week.

If you have employees who are not paid on weekly basis, you may refer to the chart below for the proper deduction limit per period.

Payroll Schedule Deduction Limit per period
Daily $0.14
Weekly $0.60
Bi-Weekly $1.20
Semi-Monthly $1.30
Monthly $2.60

See Tables of Statutory Employee Contributions Disability Benefits Law for more information on the table above.

For detailed information about New York requirements see this New York Disability Payments website.

Note: QuickBooks Desktop Payroll Assisted customers: New York SDI is not supported by Intuit. You need to track and pay this insurance yourself.