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Bairefoot Inner circle 1097 Posts 
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Here is the question. If you are working under 1099 at a restaurant. Do you have to have workman's comp? A new tax lady at my restaurant is saying that I do. Thanks
Michael |
TomBoleware Inner circle Hattiesburg, Ms 3174 Posts
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The reason for this is, workman's comp doesn’t cover those working as an independent contractor.
But here is the thing, workman's comp is usually just for those with employees, and in most states doesn’t even cover the owner of the business. So you may not even be able to buy it in your state. Of course each state can differ. What you need is Liability insurance. Ask if that would do. Tom
The Daycare Magician Book
https://www.vanishingincmagic.com/amazekids/the-daycare-magician/ My Blog - https://boleware.blogspot.com/ |
Bill Hegbli Eternal Order Fort Wayne, Indiana 22797 Posts
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Is the restaurant deducting taxes from the check they give you. If so, you are employee. You should be an independent contractor. They pay you the full amount you charge and you pay your own taxes and insurance. Seems there is confusion on someone's part here. Tell the new account that she should check with their tax accountant. Being they are paying more then $500, you need to get a tax exempt number and give it to the bookkeeper. If you do not have a tax exempt number, the they will take your social security number, as they have to report anything over $499 to the government. That figure was some time ago, so it may be more or less now. This also means you will have to pay quarterly estimated taxes as well.
I strongly suggest you talk to a good tax account, and an attorney to find out more about when you are business and the only employee. |
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Bairefoot Inner circle 1097 Posts
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Thank you. I did mention the Liability Insurance. Thanks again.
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Bairefoot Inner circle 1097 Posts
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She seems to think that the other entertainers they hire every now and then needs workman comp also. Just weird I have never heard about it before. I am a 1099 she knows this because she is the tax accountant. I work for them all year round. Thanks
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TomBoleware Inner circle Hattiesburg, Ms 3174 Posts
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Many magic entertainers get the labiality policy through SAM or some of the other magic groups, and that is all they need.
I do know, the law doesn’t require you to have workman's comp unless you have a certain number of employees working for you. Around 4 for most states. Tom
The Daycare Magician Book
https://www.vanishingincmagic.com/amazekids/the-daycare-magician/ My Blog - https://boleware.blogspot.com/ |
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Taterini Special user 604 Posts
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I sent you a PM... hope it helps
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Michael Messing Inner circle Knoxville, TN 1817 Posts
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Michael,
It's going to depend on the State of South Carolina's rules concerning workers compensation. In Tennessee, a business is not required to have workers compensation insurance unless they have at least five employees. Individual business owners with no employees (like you) are automatically exempted from workers compensation coverage unless they elect to be covered. The exception to this is anyone who works in the construction industry. Tennessee has a separate set of rules for contractors. I just did a quick search on the South Carolina Workers Compensation Commission website and found this: Sole proprietors and partners are considered owners of the business and are not automatically included under workers' compensation insurance. They may elect to be covered if they are active in the business and have duly informed their insurance carrier. This is the same as Tennessee so you are not required to have workers compensation. Here's the website: http://www.wcc.sc.gov/Pages/FAQEmployers.aspx |
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TomBoleware Inner circle Hattiesburg, Ms 3174 Posts
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Quote:
On Dec 18, 2014, Michael Messing wrote: Well said Michael. Same in my state. While the laws do differ a little from state to state the whole concept of workman's comp is the same. It is to protect employees on the job. And those not considered an employee are not covered under the policy. The problem with situations like this is; workman's comp is like a workers 'group' policy. And it is hard to find an insurance company that will sell you a group policy for ‘one’ person. 
Liability Insurance or a signed release is about the best you can do. Tom
The Daycare Magician Book
https://www.vanishingincmagic.com/amazekids/the-daycare-magician/ My Blog - https://boleware.blogspot.com/ |
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Bairefoot Inner circle 1097 Posts
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Thanks to everyone. This is why the Magic Café is great place for magicians when they come together and help. And just case you haven't heard it yet "Merry Christmas."
Michael |
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Bairefoot Inner circle 1097 Posts
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Talk to the lady tonight. They had a misunderstanding. I don't need workman's comp only liability insurance. Thanks to everyone who has helped. But I did learn that if they wanted me to get the workman comp and I wanted work there I would have to get it.
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Bill Hegbli Eternal Order Fort Wayne, Indiana 22797 Posts
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Yes, a "Hold Harmless" may satisfy them from any legal action on the behalf of Bairefoot. Hold Harmless is a simple statement in writing that Bairefoot will not give any liability to the restaurant for any accidents happening because of Bairefoot's actions.
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eatonmagic Special user Orlando, FL 737 Posts
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Michael,
These are the people I have my policy with: https://www.specialtyinsuranceagency.com......nce.html -Eaton |
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Bairefoot Inner circle 1097 Posts
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Thanks Eaton
Michael |
Joe S. Loyal user Los Angeles, CA 270 Posts
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One more vote for Specialty Insurance Agency. Truly WORLD-CLASS service. They take care of me, even when I only have a few days notice.
Love those guys. |
| The Magic Cafe Forum Index » » Tricky business » » Need help (0 Likes) | |
Posted: Dec 18, 2014 01:39 am 
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