Separate Payroll to Lower Costs

If your policy has more than one classification code, show payroll separately for each classification to take advantage of lower rated classifications. Otherwise, all payroll may be assigned the highest rated classification.

Overtime

The extra portion of overtime pay, known as premium pay, is excluded from premium charges. For example, if a worker earns $10 per hour during regular hours, and earns $15 (time and a-half) during overtime hours, the extra $5 is not included in the total pay. Separate overtime properly for each worker and show the total for each classification to receive credit.

Construction

NYSIF can apply more than one construction classification for your business and each of your workers. To be eligible for lower-rated classifications, separate payroll records by classifications based on actual time worked (not by percentages) for each worker. You can further reduce premium costs through proper payroll separation by territory and trade. To verify your payroll separation, NYSIF’s auditor will request records including contracts and invoices. See Construction Policyholders Special Circumstances for more information.

Workers’ compensation certificates of insurance for subcontractors should be available at your audit to avoid charges being made for these subcontractors.

Executive Officers & Owners

Covered corporate officers, individual owners and partners are classified like any other worker. For example, if they work in an industrial plant, the plant classification applies; if they work in an outside sales position the outside sales classification applies, etc. Active officers are subject to minimum and maximum payroll limitations, as are owners or partners who choose to be covered.

Need more information? See Executives and Owners.

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