Worker’s Compensation Insurance a.k.a Workman’s Compensation Insurance provides for the medical cost of the sustained injury and for lost wages during recovery. In addition, if the worker sustains permanent disability, the insurance provides compensation until the Social Security Administration’s Disability Program starts.
Workman’s Compensation Insurance
Workman’s compensation insurance is a legally mandated form of insurance to protect workers for an on the job accident. Each state promulgates regulations in reference to this workman’s compensation insurance.
Insurance is a risk reduction tool used in our private and business lives. It is founded on the basic premise that a large group of individuals will cover a catastrophic event for one of the members sometime in the future. In general, the insurance company uses actuarial science (law of large numbers) to calculate the financial cost of accidents over a given period of time.
The employee manual is a guidebook and a tool to explain the policies and procedures for the small business operation. It addresses the basic expectations for performance and conduct of the employee. The manual is only a guide and the employee needs to understand its importance in the overall corporate policies and procedures hierarchy.
The Internal Revenue Service promulgates rules and regulations concerning the employment status of workers. In general, workers are classed as W-2 employees and certain tests must be met to have the worker classed as a 1099 subcontractor. All 1099 subcontractors should be issued a Form 1099 in January of each year for the prior calendar year of services. This article describes the general tests that must be met for the worker to be considered a 1099 subcontractor.