The New York workers compensation costs are now rated the highest in the country thanks to a surcharge that has been added. The surcharge is about five times the cost of the average charge other states are using.
Thirty-two state currently impose such changes on the cost of workers compensation and the average stands at 4.2%. New York’s surcharge is currently at 20.2%. The second highest surcharge is in Minnesota which is still only at 8.9% comparatively.
The Workers Compensation Policy Institute stated its concern about the high increase and expressed worry for the employers that will struggle with this added tax burden. It is common for states to fund the workers compensation system using assessments of the premiums paid by employers. A new 2 percent cap on property tax could end up hurting the state if a high number of claims are filed this year. The budgets could be hit hard and municipalities may struggle to raise revenue necessary. Right now city claims are estimated to be small and the costs for workers compensation are not directly responsible for budget gaps hurting the state’s municipalities.