1099 Employees Work Comp

1099 Employees Work Comp
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Is workers’ comp required if you have no employees and only hire subcontractors?
If you hire subcontractors, you may be required to purchase workers’ comp coverage depending on how the laws in your state classify when workers are considered employees. Even if subcontractors have their own workers’ comp policy, your state might still require you to provide workers’ comp coverage for them. Are you looking for roofing contractors workers’ compensation?
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How do you know if someone is a subcontractor or an employee?
The laws determining if a worker is classified as a subcontractor or an employee can be confusing, open to interpretation, and can vary from state to state. Traditionally, workers who receive a W-2 tax form are considered employees and those who receive a 1099 are contractors. However, you might be required to provide workers’ compensation for 1099 contractors as well – depending on the laws in your state.
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If a subcontractor working for you is injured and your state determines the worker should have been classified as an employee, you could face fines or even jail time for not carrying workers’ compensation coverage, depending on the laws in your state.
Consider talking with a business attorney to make sure anyone performing work for you is properly classified, and that you have the appropriate level of workers’ compensation coverage.
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