If Your Employees Travel Where Do You Pay Premiums

A Reader Asks:

If an employer is in a non-monopolistic state and the employee’s residence is in a non-monopolistic state, but may work from time to time in a monopolistic state, what state should work hours be reported in?

Workers Comp Kit Blog Replies:

Normally, the state where the employee is domiciled is where the employee is counted for workers comp purposes.

If the employee is traveling on business in a monopolistic state, and if the employee is not there long enough to qualify to pay that state’s income tax, then the workers comp premium is based on the employee’s home state. (WCxKit)

On of our claims experts is in Kentucky this week and next week doing an audit for a for a large pool. Kentucky is not a monopoistic state. To be an employer subject to WC laws,. you must have two or more employees who work 20 weeks or more during the year. While each state sets their own requirements, the casual worker (like our consultant) here for two weeks would not require an employer to purchase wc coverage.

All four of the monopolistic states have a "help line" to answer such questions, but they will, of course, want the employer’s identity so the state can decide whether or not to assess a premium. To find those help line go to http://reduceyourworkerscomp.com/workers-compensation-state-laws-and-regulations.php

Note: Our answer is a generalization. Do not rely on the above! Call your broker and ask someone well acquainted with your circumstances.

Author Rebecca Shafer, J.D./ Consultant, President, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: Info@ReduceYourWorkersComp.com or 860-553-6604.

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers' comp issues.