I'm retired from employee benefits and am doing bookkeeping for some friends who have a California non-profit corporation. The situation when I came on is they have two W2 employees. One lives in CA and the other is in another state. They periodically hire contractors to do whatever. Everyone (W2 and 1099) works from home or otherwise provides their office space, equipment etc. and has does similar work for multiple people or employers. The 1099s (perhaps 6 on board at a time) are scattered across the country.
My understanding is that CA requires that the people performing the main duties be W2 and be covered under WC. One of the payroll companies handles the W2s and wrote the WC coverage. We're at renewal and the carrier is asking about the number 1099 contractors and W2 employees both number and dollar amount. The 1099s are paid through the regular in house payroll system.
If WC is a requirement, they'd like to keep it but it might be difficult to prove which entity the employee was actually performing tasks for if injured the carrier could deny the claim. I'm thinking they're paying premium only to be in CA compliance and not covering any insurance risk.
Do the 1099s affect anything? Do they actually need the coverage?
My understanding is that CA requires that the people performing the main duties be W2 and be covered under WC. One of the payroll companies handles the W2s and wrote the WC coverage. We're at renewal and the carrier is asking about the number 1099 contractors and W2 employees both number and dollar amount. The 1099s are paid through the regular in house payroll system.
If WC is a requirement, they'd like to keep it but it might be difficult to prove which entity the employee was actually performing tasks for if injured the carrier could deny the claim. I'm thinking they're paying premium only to be in CA compliance and not covering any insurance risk.
Do the 1099s affect anything? Do they actually need the coverage?
