What is NYS Disability Insurance and How Can One Benefit From It?

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NYS disability Insurance or New York State disability insurance provides benefits in the form of cash to the wage earner when the employee gets injured due to some reasons or suffers an illness. It can be a medical condition or even pregnancy. Employers in the New York are subject to provisions of State Disability Benefit Law. As per the benefits, the employee is supposed to receive cash benefits just to replace the lost wages or make up for the lost wages. It offers only cash to the worker whereas getting medical care is up to the claimant. If you are an employer covered for State Disability Benefit, you need to offer benefit to your eligible employees. You can purchase an insurance policy or apply directly to the New York State Worker Compensation Board. The NYSIF will offer you the quote online. The payment may be made both to the part-time employee and the full-time employees.

NYS Disability Insurance

The chief advantage of State Disability Insurance

State disability insurance is much different from medical or health insurance. If you met with an accident leading to injury, the health insurance will just cover the medical bills. State disability insurance will offer much greater coverage if there is disability during the working period. If the instance of disability restricts you from working and you need to pay childcare cost, the mortgage expense and day to day expenses, state disability insurance comes to play its role. Unlike the Social Security Disability, this kind of insurance does not have rigorous application process or great eligibility requirement. Anyone may take up the insurance and protect oneself from an unforeseen incident.

How to buy the SDI?

You can either apply for State Disability online or can visit the nearest office. Information relating to filling up the form, the rate of premium and the various data in connection to policy will be offered by the carrier of the policy. As an employer, you can choose the carrier. If you can approach the carrier, there will be no need to send form to the Worker’s Compensation Board or make any kind of premium payment to the board. Premiums can be paid to the carrier directly. You are authorized to deduct a portion of the payroll from each employee. ½ or 1% of the wage will contribute towards the benefits. But then, as per the state rules, it cannot exceed 60 cents in a week. However, if the employer wants to increase the employee contribution towards the benefit, he can do that. But then, the amount needs to be related reasonably to the overall benefit provided. Employees have to contribute a portion of the salary while the employers pay the cost of benefits.

Each employer is supposed to maintain a prescribed form or compliance form. In the Form DB-120, the employer states the provisions of the payment that has been made to all the employees. If anyone is absent from the workplace for more than 7 days, the employer will offer the employee prescribed Form DB-271S.

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