Blog - TSIB, Inc.

New York Payroll Limitation Program: The Differences

Written by The TSIB Team | August 16, 2023

In 1999, former New York Governor George Pataki enacted the Construction Employment Payroll Limitation Law. This law provides a more equitable way to calculate Workers’ Compensation premium in the New York (NY) construction industry and helps to equalize the differences between high and low wage paying employers.

The Law requires employers to keep detailed and constant weekly payroll records for each worker proving their total weekly wages, hours, and the type of work performed. It is important to note that the law does not apply to employers working on a one or two-family residential housing.

Failure to keep proper records or knowingly falsifying any data can expose an employer to an accusation of insurance fraud under the law. Ensuring compliance with all applicable laws and regulations is essential, as well as developing an efficient, accurate, and comprehensive payroll procedure.

Differences between Unlimited & Limited Payroll
What is Unlimited and Limited payroll, and how do they differ? If you have worked in the NY construction industry, you have probably heard of these two terms. 

  • Unlimited Payroll 
    Includes all man hours (including overtime hours) multiplied by the regular unburdened hourly rate of each worker. Overtime hours are included but not overtime wages. Workers’ Compensation premiums are calculated on the full amount of payroll expended.

  • Limited Payroll 
    Applies a payroll cap to actual weekly payroll per worker in each of the eligible class codes. This limitation is directed by New York Compensation Insurance Rating Board (NYCIRB), and it changes every year on July 1st. Workers’ Compensation premiums are calculated on the capped wages, resulting in a lower premium.  

    To view the current payroll limitation cap, please view the NYCRIB website: https://www.nycirb.org/bulletins.php 

If you are enrolled in a Wrap-Up with TSIB, and have questions regarding Unlimited and Limited payroll, reach out and speak with one of our Wrap-Up Administrators!

TSIB’s Risk Consultants are currently servicing the following locations:
East Coast: New York City, NY; Bergen County, NJ; Fairfield County, CT; Philadelphia, PA
Texas: Austin, San Antonio, Houston, Dallas
California: Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County

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