NEW YORK WORKER'S COMPENSATION ISSUES FOR SMALL CORPORATIONS
BY
MICHAEL J. LOMBARDO, ESQ.

 

When consideration is given to forming a Sub S Corportion, consideration should also be given as to whether the shareholders might be subject to the Worker's Compensation (WC) Laws of New York (WCL). Below is a chart that summarizes some of the applicable provisions of the WCL that should be considered before forming a Sub S Corporation.

Sole officer and sole shareholder and no other employees	Automatically excluded from WCL
Sole officer and sole shareholder with  employees	Automatically included but may elect to exclude self  when policy is written or renewed  (Form C-105.51 )
2 officers who each own a share and together own all shares and no other employees	Automatically excluded from WCL
2 officers who each own a share and together own all shares, with employees	Automatically included but may elect to exclude self when policy is written or renewed (Form C-105.51 )
> 2 officers or > 2 shareholders with or without employees	Included under WCL and cannot be excluded
If General Contractor requires WC insurance	Must provide WC Insurance even if excludable

 

 

CAUTION:    THIS ARTICLE IS INTENDED TO PRESENT GENERAL INFORMATION AND IS NOT INTENDED TO BE A SUBSTITUTE FOR CONSULTATION WITH LEGAL COUNSEL.

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Last Update: April 27, 2010