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Worker Comp Premium: Protect your business from worker’s compensation penalties
Failing to report all employees to our company can be an expensive proposition.
For example, a drywall contractor was fined $361,000 for failing to provide worker comp premium.
The company neglected to enroll six new employees with the PEO Company before allowing them to work on a jobsite. By not reporting these employees and paying them in cash, they were not covered under the PEO's workers' compensation contract.
This practice is extremely risky. The employer faces the risk of fines, and since the PEO does not have the employees covered under their workers' compensation contract, the employer retains all responsibility for the risk. If an employee gets hurt, the business owner may have to pick up the tab.
More specifically, the owner of the business becomes personally liable for all medical bills and the injured employee's pay, should the employee be unable to return to work. These costs can be almost endless because the business owner no longer has the protection of the workers' compensation laws.
The answer is simple: make certain you enroll your employees as soon as you hire them.
If the State enters your business or jobsite, they will call us to confirm employee names. If the names do not match, you might find yourself in a tricky situation. Besides, who has $361,000 to throw away in fines?