California audit rules
The WCIRB's rules, officer limits, dual wage classes and disputes.
Learn more →New Jersey workers' comp audit
Workers' comp audits in New Jersey: CRIB rules, payroll and disputes
New Jersey has its own rating bureau and some rules found almost nowhere else, such as counting tips as payroll. Here is what to prepare.
Quick answer
In New Jersey, the Compensation Rating & Inspection Bureau (CRIB) sets the rules, rates and class codes in the New Jersey Workers Compensation and Employers Liability Insurance Manual, which is approved by the Commissioner of Banking and Insurance. Every workers' comp insurer in the state must be a CRIB member.
Two New Jersey rules catch employers out. Tips received regularly from customers count as payroll, at a fixed $10 a week per employee if you kept no record. And the payroll of every active executive officer is included, at a weekly minimum and maximum. The premium part of overtime is excluded when your records show it.
Disputes over a CRIB ruling go up through CRIB in writing, to its Governing Committee, and then to the Commissioner of Banking and Insurance. Before a premium appeal is heard, the undisputed premium must be paid.
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How New Jersey counts payroll at audit
From Part 3 of the CRIB manual (version dated 01/01/2026). Officer limits are weekly.
| Item | New Jersey rule | What to keep |
|---|---|---|
| Overtime | The extra pay above the regular rate is excluded when records show it by employee and by class. If only total overtime pay is shown, one third is excluded (one half for double time) | Payroll register with overtime premium in its own column, by employee and class |
| Tips | Tips received regularly from others than the employer are payroll, except in classes that say otherwise. Without a daily or weekly tip record, tips are fixed at $10 a week ($2 a day) per tipped employee | A daily or weekly record of tips received |
| Board and lodging | Valued at $25 a week for both, $15 for board alone, $10 for lodging alone | Records of meals and lodging provided |
| Benefits and severance | Employer payments to group insurance or pension plans are excluded. Severance is excluded, except pay for time worked or accrued vacation | Plan statements and separate pay codes for severance |
| Expenses and per diem | Excluded if for business, recorded separately for each employee, close to actual cost and paid in addition to wages | Expense reports and travel records |
| Executive officers | All active officers are included, at no less than $860 and no more than $3,430 a week each. Payroll goes to the highest-rated class that describes any of the officer's duties, with exceptions for construction and erection work | Names, titles, duties, pay and weeks active for each officer |
| Sole proprietors, partners, LLC members | Excluded unless they elect coverage at purchase or renewal. All partners or members must agree, and the choice cannot be undone during the policy term | The election and each owner's pay |
New Jersey-specific mistakes that raise the bill
- Leaving tips out of payroll, as you would in most other states
- Not keeping a tip record, so a fixed weekly amount is used instead of the real one
- Expecting an active officer to be left off the audit
- An officer doing office and field work, whose whole payroll is placed in the highest-rated class
- Reporting overtime as one gross amount, so the premium part cannot be excluded
- Applying for the construction premium credit too late, or with no payroll and hours records to back it up
New Jersey audit checklist
- Pull payroll by employee and class for the policy period, with overtime premium shown separately.
- Gather your daily or weekly tip records, and include tips in the payroll you report.
- List every active officer with duties, pay and weeks active.
- Find the coverage election for any sole proprietor, partner or LLC member.
- For construction classes, check eligibility for the New Jersey construction premium credit (average hourly wage of $38.00 or more, experience-rated policy, online application 60 days before the rating effective date), and keep the WR-30 payroll and hours records for the audit.
- Collect certificates of insurance for every subcontractor for the dates of the work.
- Check the final audit results line by line, and pay the undisputed part on time.
How a New Jersey audit dispute works
From Rule 11 of the CRIB manual. Put every step in writing.
- Ask your carrier to correct the audit in writing first, with the records that support the change.
- To appeal a CRIB ruling, write to the director of the CRIB division that made it. An informal conference follows.
- If it is not settled, the appeal goes to CRIB's Executive Director and then to its Governing Committee. A premium appeal is heard only if the undisputed premium has been paid, and before cancellation takes effect or collection starts.
- The Governing Committee's final decision can be appealed to the Commissioner of Banking and Insurance under N.J.S.A. 34:15-89.
Keep reading
Florida audit rules
Construction exemptions, subcontractor proof and disputes.
Learn more →New York audit rules
NYCIRB rules, officer limits, the construction cap and appeals.
Learn more →Pennsylvania audit rules
PCRB rules, full overtime, officer exclusions and appeals.
Learn more →Texas audit rules
NCCI rules with Texas codes, non-subscribers and disputes.
Learn more →Payroll reconciliation template
A free template that lines up the payroll register, Form 941s, and workers' comp payroll by quarter.
Learn more →Frequently asked questions
Are tips included in New Jersey workers' comp payroll?
Yes. Unlike most states, New Jersey counts tips received regularly from customers as payroll, except in classes that say otherwise. If you kept no daily or weekly tip record, the manual fixes tips at $10 a week ($2 a day) for each employee who receives them.
Is overtime included in New Jersey workers' comp payroll?
The extra pay above the regular rate is excluded when your records show it by employee and by class. If only total overtime pay is shown, one third of it is excluded, or one half for double time.
What are the New Jersey executive officer payroll limits?
The current CRIB manual counts each active officer at no less than $860 and no more than $3,430 a week. Every active officer's payroll is included.
Who sets workers' comp class codes in New Jersey?
The Compensation Rating & Inspection Bureau (CRIB). Its manual is approved by the Commissioner of Banking and Insurance, and every workers' comp insurer in New Jersey must be a CRIB member.
How do I dispute a New Jersey workers' comp audit?
Start with your carrier in writing. A CRIB ruling can be appealed in writing to the CRIB division that made it, then up to the Executive Director, the Governing Committee and finally the Commissioner of Banking and Insurance. Pay the undisputed premium first.
Sources
Official rating bureau and state agency pages this guide is based on.
Important scope note
Practical prep guidance only.
This page summarizes New Jersey rules published by CRIB for audit prep. It is not legal, tax or insurance advice, it is not a ruling on your policy, and the CRIB manual and your carrier's audit are the final word.
Get your New Jersey records in order before the audit
Start with the free checklist, check the likely bill with the estimator, or use the workbook to keep payroll, tip records, officer pay and subcontractor COIs in one file.