- September 20, 2018 at 2:47 pm #250171
I wish to work as a subcontractor but my budget doesn’t let me to get a Workers Comp. can my employer could buy me a insurance for me and receive 1099 without to be employee ? And to pay my own taxes. ? Or I have to be obligated to buy one by my own.
Thanks.September 20, 2018 at 3:04 pm #250539
If you have no employees, there may be no need for you to purchase worker’s comp. If you have employees, you must have worker’s comp.
And to complicate matters, each state’s rules are slightly different.
An employer can’t buy worker’s comp for sub-contractors according to this article I found. So that option probably won’t work. Perhaps they could hire you as a ‘temporary employee’ instead? https://www.disabilitysecrets.com/workmans-comp-question-22.html
In addition, as a sub-contractor with no employees, you may not need to buy workers comp according to this insurance company. https://www.insureon.com/products/workers-compensation/guide/comparing-workers-comp/freelancers-independent-contractors
The trouble may be that the company you do work for is requiring YOU to have workers comp. Is it possible you could get workers comp for yourself, and then pass on the additional cost to your employer in terms of raising your sub-contractor rates to cover the difference?
An insurance BROKER that sells workers compensation can help. We recommend AP Indigo, as they have a pay as you go program that lets you deduct the premium out of your weekly payroll so that you don’t have to come up with all the money up front.
Here’s their information: https://apintego.com/for-small-business/insurance-by-type/workers-comp/
Best of luck to you!
Laura, HR Staff Writer
p.s. I’m updating the worker’s compensation articles next week and will do more research to address your question in the article update.