workers comp

Discussion in 'Business Operations' started by MATTHEW, Jul 17, 2001.


    MATTHEW LawnSite Senior Member
    from NE OHIO
    Messages: 665

    I know it is a touchy subject(to some because it is a legal matter) but I hired a couple of guys for temporary work and paid them cash because they wanted it that way. It was under $600.00 for each of them so I do not have to 1099misc. them.
    But I found out today that if you do not carry workers comp on a
    hired employee and they get hurt, they can file a claim anyway and the work. comp. office will fine you for the expense and for not having it in the first place. If you are solo, you do not have to have it. But my question is this: if you have an employee, say your wife, just answering phones(and she doesn't ever file a case) do you have to take it out on her?
  2. Fine Lines Lawn

    Fine Lines Lawn LawnSite Senior Member
    Messages: 447

    I don't believe you will need it for your wife while answering the phone (Unless it's a very dangerous evil phone), but it's good protection for you in case you do have hired help.
    Also, if you plan on going after any commercial business, most will require it.
  3. gene gls

    gene gls LawnSite Gold Member
    Messages: 3,213

    Workers Comp is based on your payroll.

  4. Randy Scott

    Randy Scott LawnSite Bronze Member
    Messages: 1,915

    You need to check with someone in YOUR state about the rules and regulations. I wouldn't trust the advice of someone here, they may not necessarily be correct. ( No offense to anyone ) This is serious stuff that needs correct answers, not assumptions. Just my opinion though.
  5. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Messages: 1,415

  6. MJ

    MJ LawnSite Senior Member
    Messages: 312

    In Maine, you can get a waiver of Workman's Comp for a spouse or adult child. Anything else (including paying cash) is subject to WC. Big fine ($10,000) if the person puts in a claim and you didn't have a prior determination of WC coverage.
  7. charlesw

    charlesw LawnSite Member
    Messages: 34

    It is my understanding that if you pay cash and the person is considered self employeed you don't have to provide workers comp.

    But what do I know, I'm just starting out going solo...

    Like everyone said check with you state.

    I find a good place to start checking on the regulations is the local Chamber of Commerce. They are usually very friendly and can put you in contact with the right people.

    Had to get my 2 cents in this one...
  8. SCL

    SCL LawnSite Senior Member
    Messages: 543

    Ah, what charles speaks of is the old "subcontractors" idea which has met quite disfavorably with insurance companies and the IRS alike. They have to meet pretty strict guidelines to be your sub. Check with a good accounting firm, they usually have pretty good resources, or try your local community college to see if they have a small business resource center.

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