Payroll Limitation Program

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.

For more information, visit the New York Compensation Insurance Rating Board Liability Insurance Manual, Part I, Rule V (Premium Basis), Subsection G.

Eligible Classification Codes

0042 5069 5223 5479 5610 6204 6319 9534
3365 5102 5348 5480 5648 6216 6325 9539
3724 5160 5402 5491 5651 6217 6400 9545
3726 5183 5403 5506 5701 6229 6701 9549
3737 5184 5428 5507 5703 6233 7536 9553
5000 5188 5429 5508 5709 6235 7538
5022 5190 5443 5536 6003 6251 7601
5037 5193 5445 5538 6005 6252 7855
5040 5213 5462 5545 6017 6260 8227
5057 5221 5473 5547 6018 6306 9526
5059 5222 5474 5606 6045 9527

Maximum Chargeable Payrolls

Weekly payroll cap amounts and effective dates are as follows:
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

Recordkeeping

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.

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