States can choose various methods for funding their workers’ compensation systems. The most common method is to impose an assessment on premiums paid by employers..
Thirty-two states impose this premium tax with an average assessment of 4.2 percent. New York’s tax on workers’ compensation premiums is 20.2 percent, nearly five times the average. New York’s assessment is also more than twice the 8.9 percent assessment in Minnesota, the state with the nation’s second highest assessment.
“This tax burdens all employers – and municipal employers feel this mandate especially acutely as they struggle to provide essential services and contain taxes,” said Paul Jahn, the Institute’s Acting Executive Director. “This pressure is intensified by the new 2 percent property tax cap.”
For a complete report from The Workers’ Compensation Policy Institute, continue here …