Do I Need a Workers' Comp Account? (2024)

FAQs

Which situation qualifies an employee for workers' compensation coverage? ›

If you get hurt on the job, your employer is required by law to pay for workers' compensation benefits. You could get hurt by: One event at work. Examples: hurting your back in a fall, getting burned by a chemical that splashes on your skin, getting hurt in a car accident while making deliveries.

It depends on whether you tell your employer in writing—before you are injured—the name and address of your personal physician or a medical group. This is called “predesignating.” If you predesignate, you may see your personal physician or the medical group right after you are injured.

In short, just because you get a 1099 rather than a W-2 at the end of the year doesn't necessarily mean you are an independent contractor for workers' comp purposes. New York employers do not make the final call on whether someone is their employee and, therefore, eligible for workers' comp benefits.

In California, if you are injured on the job, you are entitled to receive two-thirds of your pretax gross wage. This is set by state law and also has a maximum allowable amount.

Your injury or illness must be directly related to your job to qualify for workers' compensation. This includes, but is not limited to, injuries sustained while operating machinery, slips and falls in the workplace, or illnesses stemming from exposure to hazardous substances.

Cuts and Punctures

For example, sprains and strains are the most common types of injuries for all industries except for small businesses. For small businesses, however, cuts and punctures are the most frequent type of workplace injury, followed by sprains and strains.

For the most part, the answer is no. Worker's compensation benefits in California are considered non-taxable income.

Workers' Compensation coverage is not required if the business is a one or two person owned corporation, with those individuals owning all of the stock and holding all offices of the corporation (each individual must hold an office and own at least one share of stock).

Is Workers' Compensation Coverage Required? Workers' compensation coverage is not required for a sole proprietor who does not have employees. However, a sole proprietor may voluntarily cover themselves under a workers' compensation policy.

The employer shall: Assure that first aid is administered for minor injuries or arrange medical treatment by an employer selected physician or the employee's pre-designated physician when necessary. For extreme emergency get the injured to any available doctor, hospital, or public medical service.

Does an LLC need workers' comp in California? ›

Any LLC with at least one employee requires workers' comp in California. However, the executive officers and directors may choose to exclude themselves from workers' comp CA benefits if they fully own the corporation.

Q: What happens if I'm uninsured and an employee is injured? A: Failing to have workers' compensation coverage is a criminal offense. Section 3700.5 of the California Labor Code makes it a misdemeanor punishable by either a fine of not less than $10,000 or imprisonment in the county jail for up to one year, or both.

To qualify for workers' compensation benefits, the employee must be injured while working within the scope of the job description, be injured while performing a service required by the employer or develop a disorder that can be directly linked to employment, such as asbestosis or mercury poisoning.

Only a few worker categories are sometimes exempt, such as agricultural workers and real estate agents. This exemption can also apply to certain types of business owners – sole proprietors, independent contractors, and members of limited liability companies (LLCs).

What Is Employee Compensation? Employee compensation refers to the combination of salary and wages, benefits, bonuses, and any additional perks employees receive for performing their job.

Among these are paid time off (vacations, holidays, sick days, even pay for jury duty), health insurance (including dental and vision), supplemental benefits (disability, life, pet insurance, legal benefits), 401K contributions, pensions and retirement savings accounts, and stock purchase options.