Hiring Workers
- Employer's Obligations When Hiring Workers
- Classifying Workers
- State New Hire Registry
- Advance Earned Income Credit
- Worker's Compensation Insurance
- Federal Employment Taxes
- Employment Eligibility Verification
More Tax Topics
- Business Structures
- Start-up Costs
- Depreciation
- Car Expenses
- Home Office Deduction
- Travel Expenses
- Hiring Workers
- Meals and Entertainment
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Workers' Compensation Insurance
What is Workers' Compensation Insurance?
Workers' compensation insurance covers medical expenses incurred by an employee injured while at work.
In addition, workers' compensation insurance also provides short-term compensation to an employee unable to work due to an injury sustained while at work.
Benefits under Workers' Compensation are paid even if the employee caused the injury while at work.
The main eligibility requirement for collection benefits is that the injury occurred while at work.
Who is Required to Carry Workers' Compensation Insurance?
State law requires businesses with employees to carry workers' compensation insurance.
Workers' compensation insurance may not be required for officer/shareholders of corporations in some states.
Self-Employed Persons
For workers' compensation and federal income tax purposes, Self-employed persons (sole proprietors and partners) are not eligible for Workers' Compensation Insurance because they are not considered employees of their business.
However, some states allow sole proprietors to opt in to a similar program. Check with your state.
Insurance premiums vary depending on the degree of risk associated with each employee's job.
Jobs that pose a higher degree of risk for physical injury will require a higher premium. Premiums for low risk jobs, such as office workers, will be lower.
Check with your state.
Related Links
- Employee or Independent Contractor?
- Types of Workers
- Employee Defined
- What Are Common Law Employees?
- Not Sure How to Classify Someone?
- What Are Statutory Employees?
- Withholding Taxes for Statutory Employees
- Statutory Employees Have Two Options for Reporting Income
- Withholding Taxes for Statutory Employees
- Statutory Employees Have Two Options for Reporting Income
- Withholding Taxes
- Schedule C and Self-Employment Taxes for Statutory Nonemployees
- Employer Reporting Requirement for New Hires
- What is the Earned Income Credit?
- Advance Earned Income Credit Payments
- Form W-5
- Maximum Advance Earned Income Credit Payment
- Withholding Taxes
- Advance Earned Income Credit Payments Treated as Tax Deposits
- How Advance Earned Income Credit Payments are Provided to Employees
- Reporting Advance EIC payments
- Answering Employee Questions About Advance Earned Income Credit Payments
- Annual Employment Forms
- Employment Verification
- State New Hire Registry
Copyright © 2008-2012 Larry Villano. All rights reserved.