Effective for workers compensation policies that begin on or after July 1st, 2014 for those companies that perform construction work in N.Y. the New York Construction Payroll Limitation cap will be $1,212.98.
For those who need a re-fresher; beginning in 1999 the NY Legislator passed a law that essentially caps the amount of construction payroll for certain classes of construction labor. If you are unsure if any or all of your employees qualify for the limitation, please CLICK HERE for a listing.
The reason the limitation was enacted was to give Union and Prevailing Wage Contractors the ability to be more competitive against open shop firms. They complained, rightly so that because they pay a higher wage they are being unfairly penalized as the risk profile doesn’t change. The amount they pay on workers compensation premium is considerably higher.
Thus, if your employees make more that $1,212.98 in a given week; for workers compensation premium audit / calculation purposes the maximum payroll used to calculate the workers compensation premium should be $1,212.98.
If you have any questions about the New York Construction Payroll Limitation, please contact a Risk Advisor for clarification.
Photo by Timon Studler on Unsplash
