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UPDATED: FEBRUARY 2005

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INCOME UNEARNED

NEW YORK STATE DISABILITY INSURANCE BENEFITS, WORKERS' COMPENSATION AND SICK PAY

Description: (1) New York State Disability Insurance Benefits (DIB) are cash benefits to offset the loss of earned income for certain workers who are unable to work because of a non-job-related injury, disease, or condition. There are also cash benefits to offset the loss of Unemployment Insurance Benefit (UIB) for persons who are unemployed and are unable to accept employment because of illness or injury.

For employed persons and those unemployed less than four weeks, application is made to the employer. Medical verification is required. When the person is eligible, the employer's insurance carrier pays benefits bi-weekly by check.

For persons unemployed more than four weeks, application is made to the local office of the State Department of Labor. Medical verification is required. If eligible, benefits are paid bi-weekly by state check. (2) Workers' Compensation can be a cash benefit to offset the loss of earned income for certain workers who are unable to work because of a job-related injury or disease. It can also be a payment made directly to a medical provider for the cost of care required to treat a work related injury. Payments made directly to medical providers are not considered unearned income. Rather they are similar to third party health insurance payments. If the injury or disease results in death, the benefits may be paid to the surviving dependents of the worker. Benefits include all necessary medical care arising from the job-related injury or illness. A claim for Workers' Compensation is made with the employer. Medical verification is required.

Benefits are paid by either the employer or in most cases his/her insurance carrier on a bi-weekly basis or as a lump sum. Benefits may be either temporary or permanent, and either partial or total, dependent on the severity and prognosis of the injury or disease. Only the cash benefit to offset loss of earned income is considered unearned income.

(MRG)