1099 killed my compensation policy

[hardlythere]

I was told by my auditor that regardless of whom I give a 1099 to, it will increase my payroll thus increase my policy. Even if they are 1099'd there is still a chance of injury and going after me and my workmans comp policy.

And after speaking to a friend and fellow ex contractor last night I can give a prime example. He was working as a 1099 figure with no comp on himself. While painting he fell down a non working elevator shaft after his ladder gave out, was pronounced dead on the scene. Resuscitated and survived through a coma 9 days and a leg amputation. His lawyer went after the company that hired him as there was OSHA issues and he received a settlement of 1.2million.

 

[davew128]

I think the distinction (in reality) is not so clear in this instance.

Well the WC agency doesn't see it, but it would seem to me that if the GF's company had other cleaning clients, it SHOULD be clear.

 

[Zigner]

Well the WC agency doesn't see it, but it would seem to me that if the GF's company had other cleaning clients, it SHOULD be clear.

See, there's that common sense popping up again

 

[TheGeekess]

I was told by my auditor that regardless of whom I give a 1099 to, it will increase my payroll thus increase my policy. Even if they are 1099'd there is still a chance of injury and going after me and my workmans comp policy.

And after speaking to a friend and fellow ex contractor last night I can give a prime example. He was working as a 1099 figure with no comp on himself. While painting he fell down a non working elevator shaft after his ladder gave out, was pronounced dead on the scene. Resuscitated and survived through a coma 9 days and a leg amputation. His lawyer went after the company that hired him as there was OSHA issues and he received a settlement of 1.2million.

1099 payments should not be considered payroll. The IRS loves to hear that.

 

[Dave1952]

I don't know much about this issue so I Googled using the term "workmans' comp auditor". The first 2 hits each stated clearly that using uninsured sub-contractors may indeed affect the insurance rate. No idea whether the State has an opinion on this matter.

 

[TheGeekess]

I don't know much about this issue so I Googled using the term "workmans' comp auditor". The first 2 hits each stated clearly that using uninsured sub-contractors may indeed affect the insurance rate. No idea whether the State has an opinion on this matter.

See:
https://forum.freeadvice.com/starting-operating-business-3/1099-killed-my-compensation-policy-603148.html#post3240491

 

[LdiJ]

If that was the law in MY state...that would sure take the wind out the sails of all the companies who treat their "employees" as contractors.