Workers Compensation - Workmans Comp Service Center

 

 

 

 

 

 

 

 

Current time: 05-24-2015, 05:12 PM Hello There, Guest! (LoginRegister)





Important Notice: We have deployed some new anti-spam measures that have enabled us to once again allow registration with a simple email verification. However, please do not hesitate to report suspected spam threads should they arise.

Spammers take note - your posts, if successful, will not last here. Our community is vigilant in identifying and reporting spam posts for IMMEDIATE removal. Don't waste your time!

Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Advice on 1099's and workers comp
08-31-2010, 02:51 PM
Post: #1
Advice on 1099's and workers comp
I am new to this forum and need some help. We are a small security dealership based in SC. The only employees are myself and husband. We have 1099's that do business in GA. and SC.
We were audited by SC workers comp and now they are saying we owe them thousands of dollars based on last years payroll. All of our 1099's are independent salespeople and independent installers. We do not control their sales, hours, etc. I have called WC in SC and GA and nobody can tell me for sure whether we should have to pay this money based on the payroll. The other part of this equation is that 2 of these 1099's are sales mgrs. who run sales teams. They get paid an override on each sale made by a member of their team. So, do I owe WC on these overrides, as they are paid after the sale is completed where no WC claim could be filed? Any advice is appreciated! Thanks!
Find all posts by this user
Quote this message in a reply
08-31-2010, 03:34 PM
Post: #2
RE: Advice on 1099's and workers comp
neither the employees nor the employers get to decide who is "independent" and who is not. workers comp uses different rules then the IRS.
if they are hurt collecting their pay check or meeting with co-workers, comp would have to pay.
Find all posts by this user
Quote this message in a reply
08-31-2010, 03:38 PM (This post was last modified: 08-31-2010 03:39 PM by admin.)
Post: #3
RE: Advice on 1099's and workers comp
A workers comp claim can be filed for (depending on the state) several years after an alleged incident, so paying after a sale is completed is irrelevant. Personally I am not an expert on those states, but if you have "Sales managers" running "sales teams", my bet is you do not meet the IRS definition of a contractor relationship, and you certainly won't meet WC Standards.

States are really tightening the noose on these,as there has been tremendous abuse of the 1099 payment method. Without workers' comp insurance, any of your "1099's" are free to sue your customers if they get hurt, since they are technically liable if the injury is on their property. I am not sure that is the business model you want, either.

My advice: Hire a lawyer.
Find all posts by this user
Quote this message in a reply
08-31-2010, 08:21 PM
Post: #4
RE: Advice on 1099's and workers comp
Thanks for the advice.......I know I have to carry WC, I'm just appalled at the amount they want from me. This audit was because my payroll was more than the projected number. The rate they want me to pay is double what my current policy is now since it is based on a higher payroll if that makes sense?
I have tried to hire a lawyer. My lawyer does not do workers comp. Every other lawyer I talked to only sues for workers comp claims. Any ideas?





admin Wrote:A workers comp claim can be filed for (depending on the state) several years after an alleged incident, so paying after a sale is completed is irrelevant. Personally I am not an expert on those states, but if you have "Sales managers" running "sales teams", my bet is you do not meet the IRS definition of a contractor relationship, and you certainly won't meet WC Standards.

States are really tightening the noose on these,as there has been tremendous abuse of the 1099 payment method. Without workers' comp insurance, any of your "1099's" are free to sue your customers if they get hurt, since they are technically liable if the injury is on their property. I am not sure that is the business model you want, either.

My advice: Hire a lawyer.
Find all posts by this user
Quote this message in a reply
09-01-2010, 10:57 AM
Post: #5
RE: Advice on 1099's and workers comp
You need to talk to a WC defense attorney. Most WC attorneys that advertise or are more aggressive about getting their name out are claimants attorneys. I will PM you the name and contact info for a SC defense attorney who is a member of a nationwide defense network that we partner with on seminars.
Find all posts by this user
Quote this message in a reply
10-06-2010, 05:30 AM (This post was last modified: 10-06-2010 05:30 AM by tyson.)
Post: #6
RE: Advice on 1099's and workers comp
1-being a 1099 contractor means you will not get unemployment benefits when a contract ends, so you better learn to save a lot of money for when you will have no income and you better put aside a good 30% of your gross income for taxes and make quarterly estimated payments to fed and state

IRS website has publications you can download on business expenses and bookkeeping

.irs.gov - click on forms and publications

start reading up on tax preparation for a schedule C business - most info at irs.gov,..copied

Find all posts by this user
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
Question Appealing a fine for not having workers comp insurance? giebel10 6 15,001 03-10-2015 11:20 AM
Last Post: ihnfi
  Hiring a worker with no Workers Comp - risks? jjb 6 10,794 10-27-2010 03:51 AM
Last Post: MelissaF
  Question on getting workers comp dorche 1 3,521 09-21-2010 07:24 PM
Last Post: 1171
  Getting charged for workers comp? south.fence 1 4,651 03-16-2010 09:38 AM
Last Post: pinnacle8742
  Do I need Workers Comp Insurance? Laure 5 17,627 03-16-2010 09:29 AM
Last Post: pinnacle8742
  Workers Comp for Volunteers Chadsalstrom 1 5,516 02-15-2010 08:30 PM
Last Post: 1171
  Do we need Workers Comp Insurance? mbenson 3 6,665 02-09-2010 07:11 PM
Last Post: 1171
  workers comp in georgia taron11 2 6,749 10-21-2009 09:34 PM
Last Post: ace25
  Do we have to pay Workers Comp? difjbster 3 12,489 08-29-2009 06:55 PM
Last Post: difjbster
  Workers' Comp Audit miloann2002 1 2,851 07-31-2009 11:30 AM
Last Post: 1171

Forum Jump:


User(s) browsing this thread: 1 Guest(s)


WorkersCompensation.com Attorney Locator Service. Get a free consultation today!





Contact Us | WorkersCompensation.com | Return to Top | Return to Content | Lite (Archive) Mode | RSS Syndication