Question 1

Isn't my CFO/Controller already doing this?

Accepted Answer

Possibly, but probably not.
 
Your CFO/Controller has a lot on his or her plate. And while workers' comp can account for 5 - 10% of your overall expenses, the calculation is tedious and s/he probably doesn't believe that there is enough savings to be had to justify the time required to prepare it.
 
However, nothing could be further from the truth. Preparing a payroll limitation calculation can significantly lower the amount of workers' comp you pay.
 
All we do is workers' comp so we have the time and expertise to save you money!

Question 2

How do I know if my CFO/Controller has prepared a payroll limitation calculation?

Accepted Answer

Ask your CFO/Controller to send you the payroll limitation calculation. If your CFO/Controller can't produce a spreadsheet like the one shown below (by employee), s/he is NOT maximizing your allowable deductions and you are likely overpaying on your workers' comp!
 
https://static.wixstatic.com/media/undefined
 Source: NYSIF: The Construction Employment Payroll Limitation Program(https://ww3.nysif.com/~/media/Files/NYSIF_Publications/PDF/ONLINE_PUBS/NYSIFpayroll%20limitation171010.ashx?la=en)

Question 3

How do you save me money?

Accepted Answer

We perform the tedious task of caclulating your payroll limitation by employee by week. 
 
We make sure that you don't pay more than the maximum required, the weekly payroll limit.

Question 4

What if you can't save me money?

Accepted Answer

We work on contingency. If we can't save you money, you don't pay us!

Question 5

How do you determine money saved?

Accepted Answer

The amount saved is based on your:
 
Total Workers Compensation Premium Allocation at your full Gross Wages
vs.
Total Workers Compensation Premium Allocation based on your reduced Reportable Payroll.

Question 6

Why should I believe that you can save me money?

Accepted Answer

Just as you've spent years honing your craft, so too have we. We have spent close to 20 years in the financial services industry and have an expertise in dealing with large amounts of data and performing these types of calculations. 
 
As long as you can provide us with the raw data showing the type of earnings by employee by week we will ensure that all excess payroll is excluded and that you maximize your savings.

Question 7

How long does it take you to prepare my calculation? (I have an upcoming audit and I need it prepared ASAP)

Accepted Answer

As long as you can provide the data, we can prepare the calculation in a couple of days.

Question 8

Can I go back and resubmit my audit for prior years?

Accepted Answer

Usually.
 
If you had not previously prepared a payroll limitation calculation you can ask to resubmit your information. It is at the NYSIF's discretion but you can generally resubmit for the prior 2 years' policies. (i.e. If you are currently in policy year 2017 - 2018, you can ask to resubmit 2016 -2017 and 2015 - 2016.)

Question 9

How do I get the information to you?

Accepted Answer

You can either send us the file electronically - make sure it is password protected and that it does not include any Social Security numbers! - or we can come to your office and prepare the calculation on-site. It's entirely up to you

Question 10

How do I handle wrap-up jobs?

Accepted Answer

It is essential that you have the certificate of insurance and the certified payrolls. All work on wrap-up jobs are excluded from your workers' comp so failure to provide these can result in your loss of the wrap-up benefit.

Question 11

Can you help me apply for the NY CPAP credit?

Accepted Answer

Yes we can. 
 
Please note that there are a number of restrictions in qualifying for the credit, such as the need to have an experience rating for the current year, so you may not qualify. However, we will work hard to obtain that credit for you.
 
You can find out more information about the program here(http://www.nycirb.org/faq_cpap.php)

Question 12

What is the current weekly payroll cap?

Accepted Answer

The current rate, effective 7/1/2021 is $1,594.57 per employee per week. 
 
Rates for the prior years effective:
 
7/1/2020: $1,450.17 per employee per week
7/1/2019: $1,401.17 per employee per week
7/1/2018: $1,357.11 per employee per week
7/1/2017: $1,305.92 per employee per week

Question 13

I don't pay any of my construction code employees more than the weekly payroll cap, is there anything else I can deduct?"

Accepted Answer

Yes! 
 
You can always deduct the OT bonus (the 50% bonus for 1.5x OT and the 100% bonus for double OT).
 
In addition, you can deduct all payroll related to wrap-up jobs.

Question 14

Do I need to be a construction company to qualify for the Payroll Limitation Program?

Accepted Answer

No, you only need to have employees that fall under one of the construction codes below:
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You can search the classification codes here(http://www.nycirb.org/classSearch.php)

FAQs

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