Understanding Workers’ Comp Surcharges in New York

Workers’ compensation provides medical and wage-replacement benefits to employees who are injured on the job. To help fund the system, New York requires employers to pay an assessment surcharge on their workers’ compensation premiums.

What Is a Workers’ Comp Surcharge?

A surcharge is an additional cost applied to employer premiums. States use these assessments to fund:

• Administration of the workers’ compensation system

• Special funds for certain claims

• Long-term program sustainability

How New York Compares

Studies from the Workers’ Compensation Policy Institute (WCPI) have noted that New York’s assessments are higher than those in many other states. At one point, New York’s surcharge was over 20% of premiums, compared to a national average under 5%.

While rates vary over time, the data highlights how different states fund their workers’ comp programs in very different ways.

Where the Money Goes

In New York, surcharges have historically supported:

• The Special Disability Fund

• The Reopened Case Fund

• Administrative costs for running the Workers’ Compensation Board

Each of these programs helps maintain the availability of benefits and ensures claims are processed.

Why It Matters for Employers

For businesses, surcharges increase the overall cost of coverage, which can be especially challenging for small employers and municipalities. Still, the funds play an important role in keeping the system functional for injured workers.

FAQs

Do surcharges affect workers’ benefits?
No. Surcharges are a cost for employers. Employee benefits are determined by law and are not reduced by the surcharge.

Do all states impose surcharges?
No. Roughly 30 states do, but the rate and structure vary widely.

Where can I find current rates?
Employers can refer directly to the New York State Workers’ Compensation Board for current surcharge rates and official updates.

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This blog from Pain and Injury is intended for educational purposes only. It provides general information about workers’ compensation surcharges and should not be taken as legal or insurance advice. For official guidance, please refer to the New York State Workers’ Compensation Board. Recovery is not guaranteed, and each patient’s results may vary. Always consult a qualified healthcare professional for a personalized care plan.