Premium Rates

Standard Rates

NYSIF disability benefits insurance has two individual rates for calculating premium for employees: a male rate and a female rate. Effective January 1, 2007, the male rate for an employee is $0.16 per $100.00 of payroll, up to a maximum annual rate of $28.29 per employee. Effective January 1, 2007, the female rate for an employee is $0.32 per $100.00 of payroll, up to a maximum annual rate of $56.58 per employee.

Capped Wages

A policyholder’s annual premium is determined on the basis of total number of male and female employees, and the total estimated annual wages for each employee. Wages are capped at $340 per week or $17,680 annually for each employee. If estimated annual wages for an employee are less than $17,680, the lower wages should be reported.

Estimating Premium

A NYSIF disability benefits insurance policy is written for a period of one year. To calculate policy premium, the total annual employee capped wages (limited to $17,680 per person) are estimated and multiplied by the male and/or female rates. The estimated annual premium is later adjusted at the end of the period when the policyholder submits a payroll report to report actual employee wages.

NYSIF reserves its right to apply a premium modification on policies with an unfavorable claims history, which increases the premium above standard rates. A three year loss-run history is required from the applicants’ former carrier to determine the appropriate premium modification.

Payroll Reporting

At the end of a payroll period, whether annual, semi-annual or quarterly, policyholders are required to submit a payroll report verifying the actual number of employees and capped wages for that period. Once the payroll report is received, the premium is adjusted to reflect the difference between estimated and actual wages. It is important to accurately estimate payroll at the beginning of the period to minimize premium adjustments.

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