Work Comp Question

[Jerbond]

For the state of California. I spoke to a person today that is a business owner with (1) 1099 employee that typically works 30 hours a week or less. Is the business owner required to have work comp on that employee? What if there is a group medical plan in place? On that note, am I correct in stating that a 1099 employee can be ineligible for a group benefit plan? Please help. Thanks

 

[djs]

The phrase '1099' and 'employee' do not go together. If they get a 1099, then they are not an employee. If they are an employee, they get a W-2.

That said, there are some exceptions, such as a hairdresser or realtor. Both are usually 1099, both are contractors, both require the owner/broker to have workers comp.

What industry are you talking about? And are they an employee OR 1099?

Dan
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By the way, the number of hours worked is usually pretty much not relevant. Workers comp is based on (at least partly) payroll, payroll is based on hours worked.

Dan

 

[Jerbond]

Thanks for the quick reply Dan.
The company is a real estate investment and development firm. The 10099 person in question is sort of the jack-of-all trades person. Doing what required in a one owner shop. Probably going to classify her as an office manager. Her gross estimate is $50K in pay. In California I understand that 1099 people are sort of a grey area. I just want to make sure I get this client squared away.

 

[djs]

How is this person a 1099 rather than an employee? That will give you the answer. Basically, if she is her own business, then she is responsible for herself.

I'd get the details, very specific, and then talk to the underwriter.

Dan