What you are seeing is the NY SDI (State Disability Insurance) deduction. The State of New York requires all employers to purchase disability insurance, and each employee pays a small portion of the cost. It is not stating that you are disabled, but establishing a fund for any employees who become disabled by an illness or injury that occurs off the clock, or becomes disabled due to pregnancy.
It is included in your W-2 in Box 14 because it may be deductible as a state and local tax, if you itemize your deductions on Schedule A.
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