Workmans comp in Calif. ?

[crignaj]

This is my first post here, so be gentle...

What company are you using for workmans comp. in Southern Calif. area? This would be for the cleaning staff (unattended mat).

I guess this would lead into another question, are people paying the cleaning staff under the table, 1099 , or W-2 employee (with workmans comp)?
The cleaning staff only comes in for 2 hours before closing M-F and all 1/2 day sat. and sunday.

By the way, great site !! Reading thru alot of the past posts helps out :)

[marty]

The cleaning staff at my unattended mat is handled through a 1099. Of course paying under the table is illegal =).

Does anyone know if workman's comp ins is required for a 1099 contractor?

[MrsNewMat]

I have a "contractor" that takes out trash everyday and I pay $520 a year. This does not go above the threshold that require me to issue a 1099. I think the threshold is $600 annually.

Do I need workmans comp for this contractor? My mat is in CT.

Also, if you do list this contractor as such on Schedule C, what else IRS would ask for in case of audit?

[Gary C]

W-2 I don't want any red flags. Also I like having workers comp it gives me imunity from being sued from my employes if they get hurt.

Gary

[pete f]

See if your state has a web site to clarify. I found out as long as I have 3 or less employees I do not have to buy worker comp insuance. Really, I could not beleive it, but it is true. Maybe I will go read the rules again.
A cleaning contractor would be self employed and clean by agreement.

[Clothes_Tyme]

Worker's Comp is generally for employees. If you contract, then they will need to provide their own insurance. Your insurance should guard you against people on your premises.

Contract employee(s) are just that, contract. You will need a contract to state the particulars. For the hours you need a cleaning business would be best. Here in So. Cal. I know of 2 cleaning business in the LA area

If you employ someone to work for you (1099 or payroll) then YES you will need to have workers comp.

You can check the state website or the yellow pages for additional information.

[crignaj]

Thanks for all of the replies. Here is a link to the calif. dept. of insurance re: independent contractors. So maybe if I have my cleaning person buy all of their own equipment and supplies, and just give them general instructions ( place must be clean everynite etc..), sign a contract etc.. I can claim them as a Independent contractor.

http://www.dir.ca.gov/dlse/FAQ_IndependentContractor.htm

[Clothes_Tyme]

In addition,

I was looking at the IRS website doing research for school and I came across the Fed's explanation of an independent contractor.

If you do not control how the job is being performed only the outcome then they are considered to be independent.

Read below

"The general rule is that an individual is an independent contractor if you, the person for whom the services are performed, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result."

Hope this helps someone.