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FROM THE PRESiDENT
After questions about the Fair Labor
Standards Act, the second most misunderstood issue we encounter seems to be
Workers Compensation Insurance, and specifically, the impact of
subcontractors. Most business owners look at Workers Compensation insurance
for the protection it affords the worker. At least equally significant is
the protection it provides the business owner. It is known as a "sole
source remedy" which simply means in most cases, the injured worker
has no recourse against the employer for job related injuries. Workers Comp
insurance is the law of the land with most states making workers comp
coverage mandatory.
While most of us are familiar with the
workers comp insurance matters that impact our employees, some business
owners are surprised to learn of the liabilities that come about through
the use of independent contractors or subcontractors. In most cases when
you are using an independent contractor (i.e. someone whose compensation is
reported on a 1099 as opposed to a W2) or a subcontractor (sub), the
business contracting with the sub is liable for any injury the sub's
workers suffer if the sub does not have a valid workers compensation policy
in place. The remedy is to insist on the sub presenting proof of workers
compensation before they begin doing any work. If they do not have workers
comp insurance, you will be liable. Although your policy will almost always
cover the loss, the adverse experience will contribute to your own future
rate increases.
There is another distasteful aspect that
surprises some business owners. Workers compensation insurance premiums are
audited retroactively, based on the previous year's actual payroll. In most
states, by law you must provide a summary of all subcontractors you have
used to the workers comp auditor. If there isn't evidence that the sub had
a policy, then the wages paid by the sub while working for your firm will
be added to your calculation and YOU WILL PAY THE WORKERS COMP PREMIUM FOR
THE SUB FOR THE TIME THEY WORKED AS A SUBCONTRACTOR FOR YOU.
Remember you didn't hire the workers your
subs employ so they may not have the same orientation you do towards
working safely and it could cost you money. If you have questions about how
this applies, please call Julie George in our office.
-Tim Schaffer, President
Visit Our Website...
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Greetings!
Welcome
to the June 2004 edition of DiRECTIONS. In this issue, Tim discusses
Workers Compensation, we feature an article on the "Emotional
Quotient" and give you an opportunity to test yours. We also
highlight our client Temporary Staffing inc., in our "CLiENT to
CLiENT" article. If you would like us to highlight your company,
please contact Erin Boensch at eboensch@hri-online.com. This is an
excellent advertising opportunity.
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Please Join
Us as We Congratulate Judy Kennedy!
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We are pleased and proud to announce
that Judy Kennedy, our Benefits/HR Specialist has passed the Society
for Human Resource Management professional certification exam. Judy
devoted many hours of her free time to an extensive study program
involving night classes and intensive study to earn her new and
well-deserved title, Judy Kennedy, PHR (Professional in Human
Resources).
Judy has mastered information in the
following six functional areas of human resources: Strategic
management, Workforce planning and employment, Human resource
development, Compensation and benefits, Employee and labor relations,
and Occupational health, safety and security.
Our clients now have a window into the
complicated world of Human Resources without having to study or pay for
consultation. Congratulations to Judy Kennedy, PHR. For more
information about the PHR course of study and exam, please visit the
web site below.
http://www.hrci.org
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Measuring
Your Emotional Quotient
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You have heard of I.Q., the
"Intelligence Quotient." It is a number that purportedly
indicates your level of intelligence. There is also a measurement
called your E.Q., or "Emotional Quotient." According to Julie
B. Thibodeaux, M.C.P. and D. Stephenson Bond, L.M.H.C, the E.Q.
measures an individuals "ability to understand his or her own
emotions and the emotions of others and to act appropriately based on
this understanding."
Experts agree that people with a high
E.Q. are more successful in their work and relationships because they
get cooperation from others. It has been said that I.Q. gets you hired,
but E.Q. gets you promoted. However, unlike I.Q., E.Q. can be learned.
To test your own E.Q., follow the link
below
Determine
Your E.Q.
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CLiENT TO
CLiENT
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Welcome
to CLiENT TO CLiENT, a new feature of DiRECTIONS. This section gives
our clients the opportunity to highlight their business, and gives all
of us the opportunity to get to know one another. This month, we
feature Temporary Staffing inc. Click the link below for the entire
aticle.
Full Article
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