Workers’ Comp Board Announces 2021 Assessment Rate
On Oct. 30th, the New York State Workers’ Compensation Board (WCB) announced the assessment rate that will apply to all employers during the 2021 calendar year. The assessment rate will be 11.8 percent of the standard premium or premium equivalent. This compares with the 12.2 percent assessment rate that has been in place during calendar year 2020.
By law, the WCB’s administrative costs are supported by a series of general administrative assessments that are paid by insurance carriers and self-insured employers. Assessments also fund several other special programs that reimburse carriers or pay claimants under special circumstances, including the Special Disability Fund (also known as Second Injury Fund), Fund for Reopened Cases, Uninsured Employers Fund, and Special Fund for Disability Benefits. These other special program assessments are also paid by insurance carriers and self-insured employers.
The workers' compensation assessments against carriers are passed on to employers through a surcharge on their annual premiums. This surcharge is based on a set percentage of premium, and the percentage changes each year. As the losses and liabilities for these programs rise and fall, so do the assessments charged to insurance carriers and self-insured employers.
In addition, there are annual assessments against self-insured employers. The amount of each year's assessment is calculated by the WCB using the employer's payroll multiplied by a class code rate promulgated by the Compensation Insurance Rating Board.
Contact: Dan Heim, firstname.lastname@example.org, 518-461-2934