New Changes to NY Payroll Limitation Law

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.