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You can use customize deduction to handle state level deduction also.

Here is guide for CA SDI. You can follow it to add NY SDI also.
http://www.halfpricesoft...w-to-Handle-SDI-Tax.aspx 

Please try it.

If you have further questions, please contact us directly at services@halfpricesoft.com
Small business payroll & tax software solution
http://www.halfpricesoft.com 
Hi,
Please provide an instruction on how to add NY disability deduction to the
payroll.


Thanks