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Does Self-Employed Require Workers’ Comp?

The Growing Challenge of Multi-State Payroll

Business owners, CFOs, and HR professionals know how complex the payroll process can be. When your company hires employees that live across multiple states, however, it becomes even more challenging.

 

Varying tax regulations and location-specific wage laws make it difficult to remain compliant. The rise of remote work means these complexities are becoming even more prevalent, ultimately costing companies time and money.

 

The administrative burden of multi-state payroll can lead to costly errors—particularly for small businesses. Professional employer organizations (PEOs) step in to alleviate some of that pressure by handling administrative tasks like payroll management. This means growing companies can stay focused solely on running their business.

 

Let’s take a closer look at multi-state payroll compliance, why traditional payroll may not be the right choice for your company, and how PEOs help simplify the payroll process.

 

Understanding Payroll Compliance Across State Borders

If you’re a small business owner, hiring remote workers means having the ability to access a larger pool of talent beyond your specific area. This can be incredibly beneficial for your business, but it also comes with challenges.

 

One of the biggest challenges companies should consider when hiring talent across state borders is remaining compliant with rules and regulations regarding payroll. Not only do these laws evolve constantly, but they also tend to vary from state-to-state. If your company falls out of compliance, you could be faced with hefty fines and penalties.

 

When hiring workers across multiple states, it’s important to keep in mind that state income tax rates, unemployment insurance requirements, wage and hour laws, and benefits mandates will vary depending on where your new employees are located. Keeping up with those regulations can be especially difficult for smaller businesses or companies without a human resources team.

 

Why Traditional Payroll Systems Fall Short

Traditional payroll systems typically handle one-size-fits-all scenarios. While they may process paychecks efficiently, they may not take multi-state payroll compliance into account.

 

In many cases, generalized payroll processing can lead to miscalculated tax withholdings, late or inaccurate state filings, or noncompliance with state wage laws.

 

How PEOPayGo Makes Multi-State Payroll Easy and Accurate

From streamlining payroll and ensuring compliance to flexible pay-as-you-go programs and expert support at your fingertips, PEOPayGo makes multi-state payroll easy and accurate.

 

1. Payroll Compliance

PEOPayGo specializes in understanding and keeping up with state and federal rules and regulations when it comes to payroll. No matter where in the United States your workers are located, PEOPayGo ensures that your business will remain in compliance with those laws.

 

2. Streamlined Payroll Processes

Beyond remaining compliant with state and federal regulations, a streamlined payroll process is essential to keep employees happy and your company thriving. PEOPayGo’s platform simplifies the entire process, from onboarding new employees and time tracking to tax filings and benefits management. Automating your payroll processes with the help of PEOPayGo also ensures that it’s done accurately and on time.

 

3. Expert Support

The team of experts at PEOPayGo is always available to help with what you need—whether you’re unsure of how to handle an employee moving to another state or you’re trying to understand varying wage laws. When you partner with PEOPayGo, you’ll receive the support you need as a small or medium-sized business.

 

Simplify Payroll with PEOPayGo’s Multi-State Expertise

Managing payroll across multiple states can be complicated, and as a small business owner, you likely have a lot on your plate already. It can be difficult to keep track of varying wage laws by state, especially when rules and regulations are constantly changing.

 

When you work with PEOPayGo, you can rest assured that your business will remain compliant with state and federal regulations when it comes to payroll. Not only will you receive compliance support, but you’ll have streamlined payroll processes to help your organization simplify and thrive.

 

If you’re a business owner or HR manager with multi-state or remote employees, reach out to PEOPayGo today to get the payroll support you need.

 

Contact us today to get the coverage and support you need!

As a result of its prevalence in American history, it’s not surprising that most states require employers to carry self employed workers comp insurance, even for small businesses. This type of policy protects both the self-employed individual and anyone they may hire.

 

If you’re unable to work due to a work-related injury, self employed workers comp can provide crucial benefits during recovery. It also protects your business from legal action in the event of a workplace accident. While you’re not required to carry a policy if you’re a sole proprietor or in a partnership with no employees, it’s still a smart safeguard.

 

Once you hire anyone, even casually, you become liable for anything that happens to them on the job.

Workers' Comp for Self-Employed

As with full-time employees, independent contractors are also prone to injury on the job. You may also have to consider other safety or health concerns based on the industry you work in.

 

Independent contractor insurance protects you financially in the event that you are injured while performing contract work.

 

Workers’ compensation insurance protects independent contractors not only if they’re injured on the job, but can also help keep them out of financial ruin if a subcontractor is injured.

 

When you have workers’ compensation, you can focus on the jobs for which you are contracted.

 

Generally, workers’ compensation plans cover the following:

 

-Ambulance and emergency room services

 

-Medical costs (medication, physical therapy, etc.)

 

-Partially lost wages during recovery

Does Self-Employed Require Workers' Comp?

Generally, state law requires employers to obtain workers’ compensation for their employees, but coverage is usually optional for independent contractors and self-employed individuals.

 

Solopreneurs should look into workers’ compensation in the following situations:

 

-Some people face a higher risk of workplace injuries if they work in a high-risk industry. There are a few situations in which a self-employed person may need workers’ compensation. These include repetitive movements, exposure to chemicals, and manual labor.

 

-Self-employment insurance coverage isn’t optional in every state. Roofing contractors in California, for example, are required to have workers’ compensation policies, regardless of whether they employ workers.

 

-In addition to meeting contract obligations, independent contractors may find other businesses only want to hire them if they have workers’ compensation coverage. This is because it limits the other business’ liability in the event the independent contractor is injured while working for them.

 

You should keep in mind, that workers’ compensation is needed by most employers. In the event you hire staff, even if you’re exempt, you’re responsible for getting them coverage.

A Sole Proprietor Should Also Consider This Insurance Policy

In addition to workers’ comp, business owners often purchase general liability insurance.

 

This is the most important business insurance purchase.

 

It’s also called slip-and-fall insurance because it covers medical costs if someone gets hurt at your store or office.

 

General liability covers you whether it’s someone else or your employee who gets hurt or their property is damaged through your work.

What Do You Need To File For Workers' Comp If You're Self-Employed?

When it comes to filing a workers’ compensation claim, timing is crucial.

 

Once you have sustained a work-related injury or illness, you have a limited amount of time to file your claim.

 

If you miss the deadline, your insurance company may reject your claim. 

 

Contact your insurance company to ensure you have the necessary forms and contact information at hand to report and document the incident.

 

The provider will send you payment details if they approve your claim. If the claim is denied, you may request a reconsideration or file an appeal (usually through your state’s workers’ compensation board or commission).    

PEOPAYGO Offers Free Quotes For Workers' Comp

Protecting yourself and your business doesn’t have to be complicated. With PEOPayGo, getting workers’ comp coverage is quick, easy, and cost-effective.

 

Our all-in-one PEO solution bundles payroll, HR, and insurance, so you can focus on growing your business while we handle the rest. Just answer a few questions and let our Instaquote tool do the heavy lifting, it only takes 2 minutes!

 

Get started today and get covered with PEOPayGo, simple, smart, and stress-free.

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