Are you an employer or an employee? Either way, it’s important for you to be knowledgeable about the workers’ compensation insurance. But what is it, really?
Well, the workers’ compensation insurance is actually a type of insurance program that is set up in order to provide for workers who had been injured while on the job. This counts as a work benefit that makes up for the wages an employee might have lost while they are in recuperation. While this may sound like a liability to business owners at first glance, it is actually quite advantageous to them too as it protects them from litigation.
But that’s not all that there is to know about the workers’ compensation insurance. In this article, Lakeside Pharmacy wants to shed some light on a couple of myths you may have heard about it.
Remember, it isn’t true that…
- The employer has no more obligations once the workers’ compensation has been paid
Simply by remaining in close contact with employees early on during their recovery (which is being facilitated by providers of medical and Pharmaceutical Services), business owners will have a better chance of gauging the amount of time needed before a worker can return to the job. As a result, it can help improve productivity since it minimizes the number of days that would have been lost to either illness or injury.
- The only businesses required to honor the workers’ compensation insurance are conglomerates
While laws may vary across states, many of them still require business owners to comply with the workers’ compensation insurance. Yes, that includes even businesses that may only have one employee. Of course, the requirements for each coverage will also depend on the type of business.
- The companies can avoid paying for workers’ compensation if the employees have filled out a 1099 form
Certain small business owners think that as long as they have their workers fill in a 1099 form, they will be considered as an independent contractor; and therefore not required to have coverage. However, there is a set of guidelines that need to be met in order for an individual to be considered as an independent contractor. If the IRS or the state discovers that employees that have been classified as individual contractors are actually not what they claim to be, the business they work for can either face tax or criminal liabilities.
Now, wasn’t that an interesting read? The more you know about the workers’ compensation insurance, the better you will be able to make your stand with getting the services you need.
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