New York and New Jersey workers compensation code 5606 provides a unique class code for construction companies. Many business owners prefer this code mainly due to it being much less than classifications for operations that apply to most contractor employees.
Definition of NY Workers Comp Class Code 5606
Classification code 5606 applies to executive level supervisors and project managers. Payroll for employees with administrative or managerial responsibility over a construction project falls under this classification.
It does not apply to workers in charge of work. These operational supervisors and managers would instead be assigned to their appropriate operational class (like roofing, plumbing or electrical), which better describes the work which they have direct supervisory control.
Workers Comp Code 5606 Examples
Employees with the following jobs typically fall under code 5606: contractor, project manager, executive, superintendent and manager.
Other Considerations for Work Comp Code 5606
It is also important to note that you cannot segregate payroll for this class code. If an employee acts in the capacity of an executive-level supervisor for one project and then actually performs work in plumbing for instance, that employee would not be eligible. For an employee to qualify for class code 5606, he must solely work 100% in executive-level supervision.
October Rate Changes to New York Worker Comp Classification Code 5606
The State of New York approved a 4.9 percent rate increase to manual base rates for class code 5606 beginning October 1, 2015. The previous rate was $3.46. Current workers comp base rate for 5606 is $3.63.