Generally corporate executive officers are employees and are covered. Individual proprietors and partners are not automatically covered, but may elect to be covered. The same is true for partners of Limited Liability Partnerships and Limited Liability Companies. The classification used for any covered individual should be based on the nature of the duties performed. The amount is subject to minimum and maximum charges. Coverage must be secured for executive officers except as noted below:
Corporations with One or Two Officers
Corporations with one or two officers can exclude those officers from coverage. To exclude such officers, the corporation may file Form U619 with NYSIF if all of the following conditions exist:
- The officers are the sole executive officers and hold all executive offices of the corporation.
- The officers own all of the issued and outstanding stock of the corporation.
- Each officer owns at least one share of stock in the corporation.
- The corporation has other employees who are required to be covered.
Elected or appointed officers of a municipal corporation are not covered unless the municipality files Form U435 with NYSIF to request coverage for these officers.
Officers of educational, charitable, religious and war veterans’ corporations are not covered unless the corporation files Form U431 with NYSIF to request coverage for these officers. Officers of all other not-for-profit corporations are automatically covered. Premium for these officers is based on actual wages, subject to the same maximums and minimums as regular corporations. To exclude unsalaried officers, not-for-profit corporations must file Form U629 with NYSIF.
Salaried or unsalaried inactive officers can be included for a fixed rate of $100 per year if all of the following conditions exist:
- The office is nominal or honorary.
- The officer does not perform any function of the office.
- The officer rarely enters the premises except to attend directors' meetings.
- The officer is not active in New York State.
Not-for-Profit Unincorporated Associations
Officers of not-for-profit unincorporated associations are automatically covered. Premium for these executive officers is based on the greater of either (1) actual payroll of the officer during the policy period (no maximum applicable), or (2) a minimum of $250 per week. To exclude unsalaried officers, not-for-profit unincorporated associations must file Form U629 with NYSIF.
Sole Proprietor & Partners
Sole proprietors and partners in a for-profit business are excluded from coverage. They may choose to be covered by filing Form U626 with NYSIF if they have other employees covered under a NYSIF policy. In some cases, one partner may elect to be covered while another may not. Limited partners cannot be included in coverage. Individuals who employ household domestic help cannot cover themselves under their domestic policy.
Completing Payroll Reports
Note: Failure to return payroll reports for any policy period may result in an estimated premium billing at a higher cost. Follow these tips for completing payroll report forms:
- Follow the instructions attached to your payroll report.
- For classifications whose description specifically states to include clerical, add clerical payroll to the regular employee payroll, and enter it in column A.
- For employees who perform multiple duties (clerical and duties described by classification), include payroll under the classification that closely describes the nature of the business or the non-clerical work the employee performs.
- Include executive officers who are not excluded by endorsement in the class code that best describes the nature of the business or the type of work the owner performs. Payroll for each covered officer is subject to minimum and maximum charges. If the payroll is in between, use the actual amount.
- To ensure payroll is not counted for excluded officers, indicate “excluded” under executive officer section. Excluded officers should be included in Question 3, but not column B.