Important Notice: Applicable to all 50 states EXCEPT New Jersey
Generally speaking, executive officers of a corporation are typically automatically included for coverage under each state’s workers comp laws unless they file for exclusion from the policy. As an officer, you are exempt because you own 10% or more of your corporation’s stock, and so are any partners you may have with over 10% ownership.
Please contact your state workman’s compensation division to file your one page form electing to be exempt from paying monthly workman’s comp insurance fees to your State.
Telling the State that your company has only exempt employees (shareholders) prevents the State from billing you for unpaid Workman’s Comp insurance when your business is ready to hire employees who are not owners.
Each State has different laws and forms regarding coverage and exemptions. Please return the prescribed state form back to your specific State Workman’s Comp Division by certified mail ASAP.
Keep this green-certified letter receipt permanently for your records.
Questions?
Call (888) 882-8483
clients@omniresources.net
Editor’s note: Nothing in this blog post should be construed as advice of any kind. Any legal, financial or tax-related content is provided for informational purposes only and is not a substitute for obtaining advice from a qualified legal or accounting professional.