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Disability Insurance tax is imposed on the first $9,000 of wages and salaries paid during the calendar year. This provides compensation to workers for loss of salaries resulting from disability caused by sickness or accident not related with their employment. Both employer and employee share the tax burden evenly.

Employees subject to the Chauffeur Social Security Tax are not subject to this tax. This tax should be paid in the same manner as the Unemployment Tax; however, a private plan may substitute it.