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Tuesday, September 11, 2012

NY Work Comp Premiums Reportedly Highest Assessments in Nation

The defense based NY Workers' Compensation Policy Institue has published a report reflecting that NY has the highest premium assessments in the country for workers' compensation. Note that NJ is not far behind when ranked with other northeastern states.

"An assessment surcharge added to workers' compensation costs borne by New York  employers remains the nation's highest, nearly five times the average imposed in other  states, according to the annual study conducted by the Workers’ Compensation Policy  Institute. New York’s 18.8 percent surcharge is more than double the 8.3 percent tax in Minnesota – the state with the second highest assessment. These assessments are essentially a tax on workers’ compensation premiums and are used by state governments to fund the system. In the last two years, New York State has increased this tax by 27.5 percent and decreased it by 6.9 percent, respectively."

Now that Governor Cuomo has reduced rates, the interesting question is what reform maybe anticipated inorder to pay for the reduction.