From 1099 to W2 employees

Yes the company i am talking about does pay work accident, but thats not a requirement thats just so the drivers are safe. and the driver wont take the company to court

 

an occupational accident policy is your best bet. runs about $50/week. only bad thing it doesn't pay very much in case of a claim.

 

Everyone is happy until someone gets really hurt. And then the company is forced into BK and everyone is fired. BTW, no unemployment.

But an earlier post mentioned it was federal. 1099 vs. W2 is but many states have different WC laws. In IL, farms with less than 5 employees do not have to have WC. Also, I'm an employee of my own company but can opt out of WC. Some states will not allow that.

But what is not avoidable is that if someone is an employee, regardless of how they are paid, that company is going to be liable for injuries.

Ever wonder why you will have customers and brokers ask about WC? Because of companies like this. They try and figure out a way around not having it, get advice from Wesley Snipes tax guy and BAM - everyone is 1099. Then when lawyers get involved because no WC, they sue everyone around.

Now, almost 100% for SS, WC and the rest. I am in IL, one of the worst states, and that is triple. That same .38 would be an end cost of .48/mile here. At these rates we would move. At those rates I would RUN.