If I fill out a W9 form for a potential employer, am I still covered under their workman’s comp?
TIA
Employees do not fill out W9s.
An employee would use a W4.
I would imagine that they are planning on using you as a contractor rather than an employee, so that thay can avoid paying withholding/workmen’s comp etc…
There are specific rules on who qualifies as an employee. http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
I am not even going to pretend that I know the answer to that question but will say that I gave my exercise riders a 1099 and they were covered under my workman’s comp. I believe that is a state of MD requirement so may not be the same in every state.
SC definition of an employee; http://scstatehouse.gov/code/t42c001.php
SECTION 42-1-130 as it applies to Workmen’s Comp.
So if you are an independant contractor you are not covered under workmen’s comp? What about if you are injured because of some dangerous condition (like a door breaks and falls on top of you or something like that). I’m guessing though that you are on your own pretty much for all the bills and time off.
I believe you can set it up on your own (separate from work) and pay in monthly (like you can for insurance) but I am not for sure… Just warning you though be careful with the whole “no taxes withheld” thing! When my SO and I worked at a ranch, he opted for that, I didnt… He got screwed big time come filing taxes (paying in something like $0.15 for every dollar made!!! Plus, paying someone to do it is expensive since they have to use the most difficult forms to fill out…he was quoted $320 just for that! Yikes!) And then there is the quarterly payroll tax that most dont realize they have to pay…
Paying .15 for every dollar you make is not being screwed. Its called paying your taxes.
[QUOTE=halo;6289791]
Paying .15 for every dollar you make is not being screwed. Its called paying your taxes.[/QUOTE]
I was going to say, you DO realize that’s exactly what happens with withholdings, except instead of taking a lump sum in April they siphon it off earlier? A refund is not the government giving you money, it means you let them siphon off too much over the year!
You earn income, you pay on it, and that’s 15%, which is more than fair.
[QUOTE=Tehzebra;6289243]
I believe you can set it up on your own (separate from work) and pay in monthly (like you can for insurance) but I am not for sure… Just warning you though be careful with the whole “no taxes withheld” thing! When my SO and I worked at a ranch, he opted for that, I didnt… He got screwed big time come filing taxes (paying in something like $0.15 for every dollar made!!! Plus, paying someone to do it is expensive since they have to use the most difficult forms to fill out…he was quoted $320 just for that! Yikes!) And then there is the quarterly payroll tax that most dont realize they have to pay…[/QUOTE]
It’s hardly a surprise - you barely have a grasp of withholding taxes vs self employment/estimated quarterly payments.
We were young n stupid at the time and were told different things from our employer (who turned out to be a nutjob…obviously) about how the contractor taxing worked(“oh no no no thats not how it works all past employees got exempt from paying taxes you’ll be fine!” Uh huh…) He had to pay in money, I got some back. We were more surprised at the cost of filing those taxes that the 15% tax pay in. Oh well lesson learned 
I’m not concerned about taxes so much as workers comp. I want to freelance on a few horses, maybe only 1-2 a day right now for this particular guy, but I want to be covered if I throw a leg over.
http://scstatehouse.gov/code/t42c001.php
Theses 2 sections below make me think I might be?? On the other hand, I am pretty terrible at reading things like this.
SECTION 42-1-130. “Employee” defined.
The term “employee” means every person engaged in an employment under any appointment, contract of hire, or apprenticeship, expressed or implied, oral or written, including aliens and also including minors, whether lawfully or unlawfully employed, but excludes a person whose employment is both casual and not in the course of the trade, business, profession, or occupation of his employer; and as relating to those employed by the State, the term “employee” includes all members of the South Carolina State and National Guard while performing duties in connection with the membership except duty performed pursuant to Title 10 and Title 32 of the United States Code; all volunteer state constables appointed pursuant to Section 23-1-60, while performing duties in connection with their appointments and authorized by the State Law Enforcement Division; and all officers and employees of the State, except those elected by the people, or by the General Assembly, or appointed by the Governor, either with or without the confirmation of the Senate; and as relating to municipal corporations and political subdivisions of the State, the term “employee” includes all officers and employees of municipal corporations and political subdivisions, except those elected by the people or elected by the council or other governing body of any municipal corporation or political subdivision, who act in purely administrative capacities and are to serve for a definite term of office. Any reference to an employee who has been injured or when the employee is dead, includes also his legal representative, dependents, and other persons to whom compensation may be payable.
Any sole proprietor or partner of a business whose employees are eligible for benefits under this title may elect to be included as employees under the workers’ compensation coverage of the business if they are actively engaged in the operation of the business and if the insurer is notified of their election to be included. Any sole proprietor or partner, upon this election, is entitled to employee benefits and is subject to employee responsibilities prescribed in this title.
SECTION 42-1-620. Agreements of employee to waive rights shall be invalid.
No agreement by an employee to waive his rights to compensation under this Title shall be valid.
Unfortunately it is not your reading of the law that counts, but that of your prospective employers. Just ask them if they intend to include you on their WC policy.
He said absolutely BUT why trust someone you don’t know? Words are words. At any rate, I did ask an insurance guy who handles workers comp insurance in SC and he did say that I would be covered, the w9 actually has nothing to do with it so I was totally off on that :).
I can only speak for PA as that is what I am familiar with:
As a small company we use quite a bit of contract labor. They are issued 1099’s at the end of the year on ALL payments made to them except for direct reimbursables.
As a company we pay workman’s comp on all employees and all contract labor that is NOT a company, ie if you personally get the 1099 we as a company have paid workman’s comp insurance on your behalf.
However, I have been told by the auditor that if a contract labor person files for workman’s comp it will be denied. As an independent contractor you are not “eligible” for workman’s comp insurance. That is one of the risks of being a self employed person and not an employee.
That said we have never had an issue that would test what we were told.
And I will never understand why we have to pay for people that cannot receive it. That will never make sense to me.
OP, you might want to pony up a few dollars to clarify this matter with an employment attorney in SC. I’m pretty damn sure if you’re a 1099 you’re not going to be covered by WC.
I spent 10 years as a 1099. The line between 1099 and 1040 is a little murky. The IRS is cracking down on businesses that have people as 1099s but treat them like 1040s to dodge the taxes/liability that employees represent.
In general, you are an EMPLOYEE if your employer dictates the hours you work, the location of your work and the manner in which the work is completed. Now there is some wiggle room in here (eg, delivery subcontractors, requirement to use specific tools). If the client indicates the general time the work should be completed and the desired result, that’s more 1099.
An example would be my old 1099 job and computer work. I prefer to use the Linux OS. My client used Windows. As long as all the work I agreed to do was DONE, they could not FORCE me to use Windows. I also was obligated to work X hours per week, and had to be “avaliability” from XAM to YPM. That span of time was actually X hours + 15, so I dictated my hours within the window they had said was desierable.
However, when they went to a different CMS (content management system) one of my duties had been to maintain content. I hated the CMS, but using that CMS was the ONLY way I could do my work. I HAD to use the tool they provided because it was the only tool to do the job.
Relevant to your interest:
http://www.irs.gov/businesses/small/article/0,,id=99921,00.html
[QUOTE=Equibrit;6290631]
Unfortunately it is not your reading of the law that counts, but that of your prospective employers. Just ask them if they intend to include you on their WC policy.[/QUOTE]
It is not their reading of the law that counts, it is the law that counts. Get an attorney to look at it. If it is too difficult to understand, there will be a giant loophole through which they can drive, meaning, proving negligence. If you are unsure, do NOT throw a leg over a horse, even handling one is iffy when you do not have your own insurance.
You actually don’t need to write the W-9 out as long it remains your “potential” employer. Nevertheless, if you’re literally an employee so you do not need to fill it as well, only if you’re registered as a small business owner. ?if so, then there’s nothing wrong about that and it’s quite an easy thing to do furthermore with the tools like this one https://w9.pdffiller.com It’s a paid one, but there’s a free trial period as well and it helps you to get your tax records clean and ready to send when you’re short of time or something
