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July 13, 2025
Question

Can someone please help me figure out why the NY Disability Employee paid tax is listed as a deduction on our paycheck stubs instead of as a tax?

  • July 13, 2025
  • 1 reply
  • 5 views

I cannot figure out how to change it to an employee tax. Can anyone help?

1 reply

QuickBooks Team
July 13, 2025

The option to change the New York State Disability Insurance (NY SDI) as a tax on the paycheck stubs is unavailable, @local46girl.

 

The NY SDI contribution is not technically a payroll tax in the same way that Social Security, Medicare, or federal/state income taxes are. Instead, NY SDI is a mandated employee-paid contribution to New York State's Disability Benefits Law program. That's why QuickBooks categorizes it as a deduction.

 

QuickBooks only follows New York State regulations, ensuring accurate reporting and compliance by displaying NY SDI under the Deduction section of paycheck stubs.

 

To learn more about payroll deductions, you may visit this helpful resource: Payroll deductions: What they are, how they work, and 10 types.

 

Feel free to revisit this thread if you need further assistance. The Community team is always here to help.