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My company in Georgia has 7 employees that we provide WC for.
We also deal buy product from 70 Independent Contractors (written contract between employer/contractor). Some advice has told me that I MUST, by LAW cover these contractors. Others have said, no.
Any thoughts or personal experience would be fantastic. thanks in advance,
most states use similar legal thresholds to distinguish an independent contractor from an employee.
but also each state has developed it's own caselaw that supports it's labor code definition of "employee".
your Insurance Agent or Broker should have the most current information as to how Georgia classifies employees.
O.C.G.A. § 34-9-1 (2009)
"A person shall be an independent contractor and not an employee if such person has a written contract as an independent contractor and if such person buys a product and resells it, receiving no other compensation, or provides an agricultural service or such person otherwise qualifies as an independent contractor. Notwithstanding the foregoing provisions of this paragraph, any officer of a corporation may elect to be exempt from coverage under this chapter by filing written certification of such election with the insurer or, if there is no insurer, the State Board of Workers' Compensation as provided in Code Section 34-9-2.1. For purposes of this chapter, an owner-operator as such term is defined in Code Section 40-2-87 shall be deemed to be an independent contractor."
sorry there is no "yes or no" answer. state comp laws are not required to follow federal tax guidance when defining who needs comp coverage.
State workers’ compensation systems are quite varied in the number and specificity of criteria used to determine the status of a party performing paid services for another party. In some jurisdictions, workers’ status does not depend at all on whom they work for, but only on how they do the work. Some states rely exclusively on the nature of the work. Others weigh multiple factors, including but not limited to the right of control and method of payment.
In georgia the weight of the evidence on these factors control the classification of independent contractors:
1. The extent of control which the employer may exercise over the details of the work;
2. Whether the one employed is engaged in a distinct occupation or business;
3. Whether the work performed is normally performed under supervision of the employer or by a specialist who needs no supervision;
4. The skill or expertise required in performing the work;
5. Whether the alleged employer supplies the tools and/or place for the work to be performed;
6. The duration of time for which the person is engaged in performing the contract;
7. The method of payment for the job;
8. Whether the work to be performed is part of the regular business of the alleged employer;
9. The intent of the parties, specifically whether they intended to create an employer/employee relationship or that of an independent contractor;
10. Whether the work of the alleged employee is part of the regular business of the employer.
See R.E. Moss v. Central of Georgia Railroad Co., 135 Ga.App. 904, 219 S.E.2d 593 (1973)..
mpgb Wrote:thank you, but maybe my question was not clear.
From an IRS standpoint, we have categorized these people as "Independent Contractors" and they receive a 1099 every year, not a W2.
What is not clear to me, is whether I am, by law, REQUIRED to get worker's comp for all of them. I understand that I MUST get coverage for our W2 Employees, just not sure about the Contractors.
If it is NOT required, I would rather self insure to handle the risk.
Wow this sounds like me......... I am contracted through a company and do file a 1099... Now on the other hand, I work out of company building, carry thier products and am told what to do and when. I also deliver thier products with my own vehicle.....
With that being said, I was in a accident and was very-very badly injured because they provided the product I fell into thier wc ins...
Now thats not saying this is your case, but somthing to look into...