Searched the site… and havent found what im looking for.
If you get a big job and need a temporary worker (my buddy who is now out of the army) is it possible to hire them without workers comp if they have theyre own insurance (he is still covered by tricare).
As far as the insurance goes i know i just need to make a call to my insurance company.
It also looks as if i cant really call him an independent contractor because he doesnt have his own business.
I’m going to give someone a call on monday (not sure who) to figure everything out.
Can anyone provide me a short answer though? Or drop a link?
Easy way to do it, if its VERY temporary is have him go to city hall and get a business license. If his insurance is general liability for window cleaning or janitorial it will be good. You will have to have him tell his agent to have your business named as additional insured and email you a cert. With that, you are good to go.
BUT. If you get audited by workmans comp. (and they WILL audit you), you will need to have him give you a bid on the work as well. You can not tell him how much he is getting paid. That makes him an employee.
This is for california, but I believe it is roughly the same thru the whole US.
The only way you will be able to get around the worker’s comp problem would be for you to contact a temp agency and tell them you want to hire this person as a temp. He would have to then go to the temp agency and sign up with them. You would pay the temp agency, they will take their cut and pay your friend whatever their rate is for this type of work. He would then be covered by their workers comp insurance and you won’t have to get workers comp for this one job. Talk to your agent as to how much it would cost you to add workers comp to your coverage. Due to the minimums most companies have for this insurance, you may find the premium to be more than you are going to be paid for this one job.
I did that, got the gov. involved and opened up a whole can of worms. I kept telling them I don’t have any full time employees it was temporary but they extrapolate how much I would owe them. They even shut down my biz account for a few days at one point. I’d just pay him cash if I were you or hire someone from day labour, they do have their own insurance.
You cant just call up your insurance company and say “hey i have employees today can you raise the premium for the next two weeks”. I know that if i were to do a 5 story job or something i can call them and they adjust the price accordingly. Or is worker comp something you have to purchase for a period usually?
If you’re talking to me, we must have a different system. It’s government. Same with unemployment and Canadian Pension, all government. Insurance is for liability etc. I mean you can buy extra insurance on yourself but Workers Compensation is government.
Worker’s comp is purchased for a period of 1 year at a time. It is based on the amount of payroll you have for your employees and is usually audited by the insurance company at the end of the year. You can not just drop it after you finish your job. The main problem is that most insurance companies have minimum payroll numbers that they will write a policy for. If you are below that payroll number at the end of the year, you still pay based on the minimum payroll number.
