Do we need workmans compensation ins
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We have a workmans comp policy in affect and with 3 employees the policy premium out of control we would like to go 1099 and eliminate the wc policy
Answer
( Disclaimer: Do not consider this LEGAL advice. I am not a lawyer.)
I appreciate the high costs attached with this issue, but before you jump off the deep end, make sure you understand the ramifications of employees vs. independent contractors. I suggest starting with this IRS info.
Deni
Answer
I just received an article that listed 10 or 12 more states doing audits on this very thing. I'm pretty sure if you have employees and then you don't, you'll move to the front of the list to be audited. The fines were up to $5000.00 plus all back taxes and insurance.
Marc Barnes
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Answer
It never hurts to get comparison quotes, or even to reach out to your existing workers' comp carrier to check and make sure your employees are being classified correctly in calculating the premium.
Some carriers now offer "pay as you go" policies that enable you to spread out the payments to help with cash flow (perhaps your existing carrier offers such an option).
Intuit has posted information on services that work with QuickBooks Payroll at http://payroll.intuit.com/workerscomp/
Hope this helps!
Comment
I believe you. Switching like that has to be a red flag.
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