New York Gov. Andrew Cuomo announced the assessment rate that employers pay to the state’s workers’ compensation system will drop to 13.2 percent from 13.8 percent in 2015, resulting in savings to all employers totaling $45 million. The drop represents the second consecutive annual decline.
The savings are a direct result of the 2013 Business Relief Act, which Cuomo signed into law last year and has cut the assessment rate for employers by a total of 30 percent over the last two years.
“Reducing the cost of doing business in New York has been a top priority for this administration and I’m proud to announce that our reforms to the Workers’ Compensation System have lowered rates for the second straight year,” Cuomo said in a statement.
“This is one more way we’re improving the economic climate in New York and making this state a place where businesses can grow, thrive and create jobs.”
The new assessment methodology and other efficiencies implemented in 2014 resulted in $170 million in administrative savings, of which $18 million directly benefits New York’s public employers, like municipalities and school districts, according to the announcement.
Signed by Cuomo as part of the 2013-14 budget, the Business Relief Act standardized and corrected the previously disjointed and antiquated assessment process. Now, all employers are charged with the same methodology, leading to a lower assessment rate for all New York’s employers, according to the announcement.
Was this article valuable?
Here are more articles you may enjoy.