Payroll limitation

{
  "id": "MLC-T-INS-002530",
  "term": "Payroll limitation",
  "field": "Insurance and risk management",
  "definition": "A cap or maximum amount of an individual employee's payroll that is used to calculate workers' compensation premiums, regardless of their actual earnings. This limitation is applied to prevent excessively high premiums for highly compensated employees whose wages might not correlate directly with increased occupational risk. State regulations typically define the specific payroll limitation amounts for workers' compensation calculations.",
  "url": "https://mlchart.com/terminology/insurance/payroll-limitation/"
}