The Scoop on Workman’s Comp

 

Workman’s Compensation rules and regulations vary from state to state. What stays the same, however, is that each employer with a certain number of employees MUST carry Workman’s Comp. In Florida, if  have a company, other than construction company, and have four (4) or more full-time or part-time  employees,  our laws state that you are required to carry workers’ compensation coverage.

If you have never owned a business before, or you have never had more than four employees until now, you might not know much about Workman’s Comp. Essentially it is an insurance program which helps employees in case of an injury or illness which results from something which happened on the job.  In my newsletter I just published an article about the nature of workman’s comp;

” Workman’s comp is a state based program as opposed to a federal program. Most states require some form of workman’s comp, and as the employer, you are expected to accept the rules and regulations. For those businesses with under four employees, there is an exemption to carrying the coverage, at least in some states.

Next, workman’s comp pays four different types of benefits. These are survivor’s benefits, disability benefits, rehabilitation benefits, and medical benefits. The injured employee or their heirs receive a lump sum payment which then relieves the business of any further liability.

Also, employees are covered with a few exceptions. These exceptions include business owners, independent contractors, unpaid volunteers and domestic employees in private homes.

In addition, workers’ comp is paid on the no-fault basis. This means that regardless of who is at fault for the injury, the employee receives the benefits, and the business does not have to admit liability.

Finally, even when an employee is outside of the workplace, they may be covered. This can include traveling for business purposes, running work related errands, or attending a required business social event.

The state rules and regulations for workman’s comp insurance can be tricky, but they do protect both the employee and employer. When purchasing this insurance, it is always best to work with a professional that can ensure your business’s needs are met.”

I can help you with any questions you may have about Workman’s Comp, so please, don’t try to guess at what you need, call an expert and do it right.

Pete DiSalvo, CPA

Vero Beach Certified Public Accountant

CPA – DiSalvo Logo

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