The New York WC Board newly announced that, for policies with effective dates on and after July 1, 2010, the payroll limitation cap will be $1,109.75 per week- an increase of $209.75 from last July. What does this mean for the wrap-up sponsor? WC assessments will increase which may lead to an increase in premiums, depending on how the wrap-up program is setup-i.e. whether the wrap-up is based on payroll or construction value. If the wrap-up is based on payroll and contractors start reporting more limited payroll due to the payroll limitation cap increase, the sponsor will be faced with a greater premium for the wrap-up insurance. Typically, the wrap-up program is based on a lower payroll limitation cap at program implementation. Therefore, it is important to keep note of the changes to the payroll limitation law. Payroll limitation changes may increase overall wrap-up insurance costs. For more information on these changes, please visit the NYCIRB.
