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| Please click one of the following questions to see the answer or ask a question here. |
Questions:
• Should I hire my Nanny as an employee?
• Should I Purchase Workers Compensation Insurance for Nannies?
• When Is Workers Compensation Insurance Required In California
• Who Pays the Cost of the insurance Policy?
• Who is insured under a Workers Compensation Policy?
• What are workers’ compensation benefits?
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Should I hire my Nanny as an employee?
A: Eliminate all the risk. Do the withholding. Pay the payroll taxes and treat her as a Employee |
Should I Purchase Workers Compensation Insurance for Nannies?
A: If you hire a nanny to work in your home on a regular basis, you should yes,look into purchasing a workers compensation policy for this person. This will provide coverage for their medical care, physical rehabilitation and lost wages if the employee is severely hurt and no longer able to work.
Each individual domestic who works 40 or more hours per week for the same employer must be covered by workers’ compensation insurance. The hours counted toward the 40 hour limit include all hours on premises. Some domestic workers live within the household where they work. A "live-in" domestic worker, means they live on the household’s premises. Live in domestics are considered to be working more than 40 hours per week regardless of set hours they may have. Another example of reaching the 40 or more hour limit would be a Nanny or House Sitter who stays over night. If you hire a domestic to be in your home from 6:00pm Friday – 6:00pm Sunday, this would be 48 hours of work and a policy would be required. Workers’ Compensation Insurance is required from the first day of the first week in which a domestic will be working 40 or more hours or living on the premises
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When Is Workers Compensation Insurance Required In California
A: Operating a small business in California can be a very challenging and confusing experience because of California’s complex legal code. While there are many legal requirements small business owners will want to become acquainted and compliant with, understanding California’s workers compensation insurance requirements should be a top priority. According to the California Labor Code, failure to comply with the state’s workers compensation requirements can result in a misdemeanor, fines of up to $100,000 and up to one year in jail.
In a nutshell, any business with employee’s (even just one), is required to purchase California workers compensation insurance
While workers compensation is required for all employee’s, it’s generally not required for owners or workers that are considered independent contractors. Be carefull, however, as the line between classifying a worker as an independent contractor instead of an employee is very fine and making a judgement error on this subject can be very costly.
The definition of an employee can be found under California Labor Code 3351, but you should consult with an attorney to make sure any independent contractors you may be using can be legally classified in this manner. |
Who Pays the Cost of the insurance Policy?
A: The purpose of a worker's compensation system is to provide financial and medical benefits to the victims of 'work-related' injuries and their families regardless of fault.
The cost of this insurance is borne by the employer. Insurance premiums are determined by the number of employees, their annual payroll, and the type of work they do. The higher the risk and normal duties of the worker affect the premium |
Who is insured under a Workers Compensation Policy?
A: Workers compensation insurance protects the domestic employee and the employer from the expenses and liabilities associated with a work-related accident. A single accident can leave the employer liable for thousands of dollars in medical bills. Don't assume that this liability is covered under your Homeowner's Insurance Policy!
Many states require household employers to carry Workers Compensation insurance for their employees. The legal requirements for obtaining this insurance vary widely from state to state, with wages paid or hours worked usually the defining item, not job description.
Typically this insurance is available through commercial insurers. State insurance pools exist for those employers unable to obtain commercial coverage. These state pools are generally very expensive due to the higher risk levels present in the pool.
Domestic employers should discuss their requirement for this insurance with their Property/Casualty agency . You may also need to update your automobile insurance if your domestic drives your personal vehicle.
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What are workers’ compensation benefits?
A: • Medical care: Prompt and effective medical treatment
• Temporary disability benefits: Payments employee receives if they can’t work while recovering
• Permanent disability benefits: Payments employee receives if they don’t recover completely
• Supplemental job displacement benefits: Vouchers to help pay for retraining or skill enhancement if employee doesn’t recover completely and doesn’t return to work
• Death benefits: Payments to employee’s children or other dependents if employee dies from a job injury or illness. |
