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We know the stress and uncertainty created by complicated tax and labor laws.
The information here will clear up the confusion.
Workers’ compensation provides financial assistance in the event of a work-related injury or illness. It’s not a tax; it’s as an insurance policy with an annual premium – and must be managed by a state-licensed insurance broker. In many states, household employers are required to carry a policy. In others, it’s optional. However, we recommend that all household employers obtain a workers’ comp policy. Here’s why.
Families who don’t have workers’ compensation insurance coverage have significant exposure if there is ever a workplace injury because employers are generally liable for the amount of the workers’ comp benefits – meaning they would have to come out of pocket for the employee’s lost wages and medical expenses. A significant accident could be financially devastating. Here is a real-life case:
A nanny sustained a back injury in a car accident while grocery shopping for her employer. She was unable to work for 12 weeks and her surgery and rehab expenses totaled about $15,000. Based on her average weekly wage and the medical expenses, the workers’ compensation benefits would have been approximately $18,000. However, because they didn’t have a policy, the family was forced to pay those benefits.
In addition to financial liability, in states where workers’ compensation is required, there are substantial fines for non-compliance. Finally, workers’ compensation insurance provides legal protection because employees who accept benefits generally forfeit their right to sue the employer – regardless of fault.
Each state has different workers’ compensation regulations. For the requirements in your state, click here.
The good news is, no matter where you live, we can help. As part of our setup process, we will obtain the requisite tax IDs and then guide you to the most convenient, cost-effective solution in your state. In many states, our exclusive partner can write a stand-alone workers’ compensation policy. We are confident that you will not find a better price anywhere since the price of workers’ compensation insurance is regulated and we do not upcharge or make any money on these policies. Our goal is simply to bring our clients a convenient, affordable solution to workers’ compensation insurance.
Like any insurance, workers’ compensation isn’t needed very often. But when it is, it’s worth its weight in gold.
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