Workers’ compensation isn't intended to cover subcontractors because they’re independent of your business (that is, they're not W-2 employees). Requirements for workers' comp vary by state, however. It’s important to carefully read your policy documents and check them against your state's workers' comp regulations. Here are instructions on how to access your policy documents in your ERGO NEXT account.
You’re responsible for making sure any subcontractors you work with have their own workers’ comp coverage, and for keeping their certificate of insurance in your records.
What's the difference between employees and subcontractors?
- Your employees are workers who receive W-2 tax forms.
- Subcontractors are typically workers who receive 1099 tax forms or are paid in cash.