As a business owner in Missouri, you have the option of hiring contract (1099) or permanent workers (W-2) and many businesses are using contract workers while sorting out the uncertainty in the economy. A contract worker is essentially a freelancer who has agreed to work for you for a mutually-agreed upon period of time, which may be extended if you see fit. An employee has been hired with the understanding that he or she will go on working for you until a termination or a resignation. Both types of workers have their advantages and disadvantages. Some of the advantages of contract workers, however, are illusory.
Some business owners favor contract workers for insurance reasons. They believe they will not be liable if the independent contractor causes any injury or damage while doing work for the business. They may also believe that they will not be responsible for providing workers' compensation insurance in the event that a contract worker is hurt on the job. In fact, both of these assumptions are incorrect in many States including Missouri. Contract workers can actually end up costing business owners just as much or more than employees when they cause injuries or damage to people or property, or sustain injuries of their own.
Unless your contractor carriers their own workers compensation insurance and provides you a certificate as proof, your work comp auditor will include thier pay when calculating your audit premium.
Ask your Yennie & Jones Agent for more details on this or any other insurance matter.
For any insurance question, call or contact Yennie & Jones Insurance Agency today.
