This program applies a maximum payroll limitation to determine workers' compensation premium. The law does not apply to construction work involving one- or two-family houses. Territorial differentials apply to casual labor and uninsured subcontractors performing commercial work.
Eligible Classification Codes
Maximum Chargeable Payrolls
|Effective date||Weekly Payroll Cap|
|7/1/2018||$1,357.11 per week per employee|
|7/1/2019||$1,401.17 per week per employee|
|Thereafter||New York State average weekly wage|
Employers must keep weekly payroll records showing each employee's actual earnings separately, and separate each employee's payroll by:
- Classification (type of work performed)
- Hours worked
- Regular pay
- Overtime pay
- Gross pay
- Residential work pay (one- or two-family homes)
- Commercial work pay (non-residential)
- Geographic location (applicable territories for non-residential work)
- Holiday, sick, vacation and bonus pay
Documentation (contracts, invoices, daily work reports) must verify your payroll separation.
Territories & Differentials/Surcharges
Three geographic territories are used to calculate premium and apply differentials/surcharges, adjusted annually.
- Territory 1:
- Bronx, Kings, New York, Queens and Richmond counties
- Territory 2:
- Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester counties
- Territory 3:
- All other counties within the state
Sample Payroll Limitation Worksheet
If you don't have a Payroll Limitation worksheet to meet your specific needs, this sample worksheet accounts for most situations.