California audit rules
The WCIRB's rules, officer limits, dual wage classes and disputes.
Learn more →New York workers' comp audit
Workers' comp audits in New York: NYCIRB rules, payroll and disputes
New York has its own rating board, its own manual and its own officer limits. Here is what a New York payroll audit looks at and how to dispute one.
Quick answer
In New York, the New York Compensation Insurance Rating Board (NYCIRB) publishes the New York Workers' Compensation and Employers' Liability Manual, and the Department of Financial Services (DFS) approves changes to it. The manual sets the class codes, what counts as payroll and how often policies are audited.
Overtime premium, tips and employer payments to group insurance or pension plans are excluded, but only when your books show them as kept in the normal course of business. NYCIRB's manual says that if the books were revised for the audit, the employer is not entitled to any exclusions. Officers and owners count at weekly limits, with a lower cap for officers on commercial construction.
Classification and audit disputes go to NYCIRB in writing, then to a conference and NYCIRB's Underwriting Committee, and then to a hearing at DFS.
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How New York counts payroll at audit
From NYCIRB's manual and bulletins. Limits shown are weekly, for policies effective on or after 10/1/2026.
| Item | New York rule | What to keep |
|---|---|---|
| Overtime | The extra pay for overtime is excluded when records show it separately by employee and by class. If only total overtime pay is shown, one third is excluded (one half for double time). Night shift premiums are not overtime | Payroll register with overtime premium in its own column, by employee and class |
| Tips | Tips and gratuities received by employees are excluded | Tip reports kept apart from wages |
| Benefits | Employer payments to group insurance or pension plans are excluded. Employee salary deferrals to retirement or Section 125 plans are payroll | Plan statements and a payroll deduction report |
| Expense allowances | Excluded only if the expense was for business, is shown separately for each employee and is close to the actual cost | Expense reports or receipts for each allowance |
| Executive officers | Counted at no less than $1,025 and no more than $3,100 a week each, averaged over the weeks employed | Names, titles, pay and weeks active for each officer |
| Officers on commercial construction | Capped at $1,922.25 a week (effective 7/1/2026) in eligible construction codes. On one- and two-family residential work, the regular officer limits apply | Job lists that show commercial versus residential work for each officer |
| Sole proprietors and partners | Covered only if they elect coverage with the Workers' Compensation Board. If covered, minimum $1,025 a week and the same maximums as officers | The election filing and each owner's pay |
New York-specific mistakes that raise the bill
- Rebuilding payroll records just for the audit, which can cost you every exclusion
- Overtime paid but not shown as its own amount by employee and class
- Officers on commercial construction reported at the regular officer limits instead of the construction cap
- Assuming a one- or two-officer corporation is excluded without filing the Workers' Compensation Board form with the insurer
- Not sending hours and wage data for the construction premium credit (CPAP) when the carrier asks, so the credit is skipped
New York audit checklist
- Check your policy dates and which NYCIRB officer limits apply (they change with the 10/1 rate filing).
- Pull your payroll register as kept during the year, with overtime premium, tips and expense allowances in their own columns.
- List every officer with pay and weeks active, and mark which officers worked on commercial construction.
- Find any Workers' Compensation Board form excluding officers, or electing coverage for sole proprietors or partners.
- For construction classes, prepare each worker's class code, hours worked (including overtime) and pay or average base hourly wage for the construction premium credit.
- Collect certificates of insurance for every subcontractor for the dates of the work.
- Check the final audit results line by line against your records.
How a New York audit dispute works
From the appeals rule in NYCIRB's manual. Check the current manual on NYCIRB's site for deadlines that apply to your policy.
- Ask your carrier to correct the audit in writing first, with the records that support the change. Many errors are fixed at this step.
- Send a written appeal to NYCIRB with all the facts and supporting documents. Appeals can cover class codes, ownership, premium audits and other decisions that affect the policy.
- If you disagree with NYCIRB's decision, ask in writing for a conference with NYCIRB staff, then appeal to NYCIRB's Underwriting Committee.
- After that, you can request a hearing at the New York State Department of Financial Services.
Keep reading
Florida audit rules
Construction exemptions, subcontractor proof and disputes.
Learn more →New Jersey audit rules
CRIB rules, tips as payroll, officer limits 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
Who sets workers' comp class codes in New York?
The New York Compensation Insurance Rating Board (NYCIRB) publishes the manual with New York's class codes and rules, and the Department of Financial Services approves changes.
Is overtime included in New York workers' comp payroll?
The extra pay for overtime is excluded when your records show it separately by employee and by class. If the records show total overtime pay, one third is excluded, or one half for double time.
What are the New York executive officer payroll limits?
For policies effective on or after 10/1/2026, officers count at no less than $1,025 and no more than $3,100 a week. Officers working in eligible commercial construction codes are capped at $1,922.25 a week from 7/1/2026.
How often are New York policies audited?
Under the manual rule effective 1/1/2025, policies with $10,000 or more in premium are audited every year. Smaller policies are audited the first year and at least every three years after, with a signed payroll statement in the other years.
Can a small corporation exclude its officers in New York?
A corporation with one or two officers who hold all the offices and own all the stock can exclude one or both officers by filing the Workers' Compensation Board's form with the insurer.
How do I dispute a New York workers' comp audit?
Start with the carrier in writing. Then send a written appeal to NYCIRB with your records. After NYCIRB's conference and Underwriting Committee steps, you can ask for a hearing at the Department of Financial Services.
Sources
Official rating bureau and state agency pages this guide is based on.
- NYCIRB: Manual amendment bulletin RC-2617 (audit and records rules, effective 1/1/2025)
- NYCIRB: 10/1/2026 loss cost filing and miscellaneous values, bulletin RC-2659
- NYCIRB: Construction officer payroll limit, bulletin RC-2653
- NYCIRB: Construction Classification Premium Adjustment Program rule
- NYCIRB: Workers' Compensation and Employers' Liability Manual (PDF edition)
- NYCIRB: Learning Center (premium audit pamphlet and video)
- NY Workers' Compensation Board: Who must have coverage
- NY Workers' Compensation Board: Form C-105.51 (officer exclusion)
Important scope note
Practical prep guidance only.
This page summarizes New York rules published by NYCIRB and the Workers' Compensation Board for audit prep. It is not legal, tax or insurance advice, it is not a ruling on your policy, and the current NYCIRB manual and your carrier's audit are the final word.
Get your New York 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, officer pay and subcontractor COIs in one file.