Record Keeping Tips

Proper record keeping can help keep your workers’ compensation costs down.

Payroll Separation

If your policy has more than one classification code, payroll must be shown separately for each classification to take advantage of lower rated classifications. If not, all payroll may be assigned to the highest rated classification.


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 one-half) during overtime hours, the extra $5 is deleted from the total pay. Your records must separate overtime properly for each worker, and show the total for each classification, to receive the credit.


Usually, a separation is allowed for an employee’s earnings if the employee works in more than one trade. Some of your employees’ payrolls can be charged at lower rates if your records show a separation for each trade on an actual time spent basis. Certain laws that help construction businesses reduce premium costs further emphasize the need to maintain proper payroll separation by territory and trade. See Important Tips for Construction Policyholders. Consult your auditor for additional assistance.

Uninsured Subcontractors

You are responsible for injury claims brought by employees of uninsured subcontractors. NYSIF must charge premiums for this exposure. Obtaining a certificate of workers’ compensation insurance coverage from your subcontractor before work is started is the best way to avoid this cost. Have the certificate on file for review by our auditor. See Important Information About Verifying Coverage of Out-of-State Employers.

Certificate Validation

A valid certificate of insurance ensures the certificate holder that the named party has insurance. Certificate validation is a valuable way to protect your business while fighting fraud and denying dishonest contractors an unfair competitive advantage. To validate any NYSIF certificate, access NYSIF eCERTS®, NYSIF’s online electronic Certificate of Insurance System.

About Owners/Executive Officers

Covered corporate officers, individual owners and partners who request coverage are classified like any other worker. If any of those persons work in an industrial plant, the plant classification will apply; if in an outside sales position the outside salesperson classification will apply, etc. Officers, when active, are subject to minimum and maximum payroll limitations. Individual owners and partners who elect to be covered are charged on the same minimum and maximum basis as corporate officers. More about Executive Officers, Owner and Partners.