Workers Compensation- How does the state ensure that employers correctly report both their occupational classifications and their payroll?

workers-comp-guyThe WCB (Workers Compensation Board) currently collects this information from all employers.  The legislation gives the WCB the power to audit all employers, including self-insured employers, and thereby ensure the accuracy of the data used in the assessment calculations.  Moreover, the legislation permits the WCB to conduct periodic audits of any employer, private insurer, or NYSIF regarding any assessment payment.  It also provides for payment of any amount underpaid, along with 9% interest.  Any insurance carrier or employer that knowingly makes a material misrepresentation of information concerning WCB assessments may be subject to a class E felony.

Prior law requires the WCB to assess a penalty of $2,000 for each 10-day period that an employer fails to secure workers’ compensation coverage.  The legislation permits the WCB to assess a lesser penalty, allowing flexibility to assist employers with compliance.

-Article Courtesy of NYSIF Workers’ Comp ADVISOR- 3rd Quarter 2013