Help me on a workmans comp?

Question

I am needing help? We live in Alabama an we own a small painting business an we have been told that in 2007 it is mandtory to have workmans comp even if we have 1 employee beside my husband. This is with all contractors an there subs. So our contractor wants to take out $12.45 per hundred we make to cover my husbands workmans comp. Then I'm told I have to get workmans comp on my single employee. Is this correct or what.

Answer 1

Unless you have a certificate of insurance from each "subcontractor" showing THEY have workers comp, YOU are required to provide workers comp for any uninsured subcontractors, as well as employers. If the subs get hurt, Guess What - YOU HAVE TO PAY ALL THE MEDICAL BILLS AND LOST WAGES!!!

12.45% is a cheap rate - you must do mostly interior painting~!

Yes, this information is correct.

Here's the problem: for years, contractors haven't wanted to pay workers comp and liability for "employees", so they call them "subcontractors". In my experience, more than 75% of the time, they are not really "subcontractors" - because you tell them when to show up, who to show up, where to show up, when to go home, and how to do the job. Heck, you MIGHT even provide them with tools, and they get 90% of their income from ONE person - you! That fails the IRS test for "subcontractor".

The only way to "prove" a subcontractor, is if they have a certificate of insurance with YOU as the holder, showing that they have their OWN liability and workers comp insurance. That will ALSO get their "gross sales" (aka - what you paid them) off your audit.

With regards to the Texan above - please know that TEXAS is the ONLY state that does not require employers to carry Workers Comp coverage. Your Texan above doesn't know that - but THIS Texan does.

Answer 2

As far as I know, you are required to have Worker's Comp on any employee not of the family. That party has to be protected when he is working even if it is only one. Being your husband is primarily THE business, the investment is worth it. What if he gets hurt while he is working and can't generate funds to cover your bills? This way you can still survive while he is recovering. It's a pain, but yes, you have to have it. Good luck!!

Answer 3

Workers Comp is regulated by each individual state so the laws can vary by state somewhat but as far as I know, Workers Comp is mandatory in all 50 states, meaning it is required.

As far as who you have to carry it on, normally, you carry Workers Comp on employees. Independent Contractors carry their own as they are employed by themselves.

Having said that, if you hire an independent contractor and he does not have workers comp and gets hurt on the job, you could be held liable and have to pay for his injuries. Your workers comp insurance would NOT cover him because he is not an employee. You'd end up paying for it personally or possibly your liability coverage would pay for it. You should get a certificate of insurance from any independent contractors that you use. You need them to show that THEY are carrying the required mandatory insurance that they need, (workers comp) AND liability coverage.

I strongly urge you to talk to an insurance agent that is knowledgeable in business coverages. Especially Liability and workers compensation. There are other coverages you need too like coverage for tools, supplies, etc. but liability and workers comp can come back and bite you big time if you're not insured and someone sues. An insurance agent would be able to give you the best advice and will probably say the same thing I just said about independent contractors.

As far as the contractor taking out a fee for his insurance, he knows he needs to base his price of what he will do the job for to include all of his expenses, including insurance. If he wants to raise his prices to cover his insurance then he needs to include that in his bids for jobs.

Whatever deal you work out with the contractor as to how he is going to get coverage is up to you but if you want to keep him as an independent contractor where he pays his own taxes, insurance and other expenses, tell him he needs to bid his prices based on all of his expenses, including insurance.

Talk to an insurance agent about what is required for your business.

Answer 4

specific, because of the fact maximum 15 minute breaks are paid breaks. you're additionally coated via workman's comp despite in case you clock out and get harm walking into and out of the construction. i detect it difficult to believe how somebody could get harm in the process a harm.

Answer 5

This is not the law. I worked for Central Texas Iron Works in Waco, Texas. They did not have Workers Comp. They had some kind of private insurance that paid some one if they got hurt on the job and they paid the hospital bill also. If you would care to call them and ask them a few questions. There # is (254) 751-5100

Answer 6

yes
it's to protect you and the employee
you'd be stupid not to have insurance.