Workers Comp?

After meeting with our insurance agent (for the association) yesterday, I have come up with questions re: workers comp.

I'm the sole employee of my association, and I get paid $114/month to do the books, deposits, and make sure things are A-OK. My insurance agent called the corporate office to see if our association needs workers comp insurance (just on me). Questions were raised about how I'm paid (W-2 or 1099 - NEITHER! I have never issued a 1099... yes, just one more thing I need to work on with this association). The corporate office said that if I were in any other state, she could give a simple yes or no answer. (I guess if there is "ownership interest", some businesses can opt out of workers comp...). Colorado, I guess, it's just not that simple.

My agent is going to research further with the Colorado Dept of Labor (asking hypothetical questions). I told him not to mention me specifically, because if the Dept of Labor doesn't know about me yet, I don't want to be the one who pops my head up first! My agent suggested a practice of "leasing" me (as the employee) to the association through a third party. Then, that third party would do withholding, FICA, SS, workers comp, matching and whatever else is involved in payroll.

So...what do some of the self-managed associations here do? Do you withhold from the "paycheck" for an owner/manager? Or am I in my own little situation here?

Thanks for your thoughts!

Tracie,

Workmen's Comp ins. covers employees injured in a workplace accident. If the assn has employees they most definitely should have workmen's comp. ins. Some assn's even decide to have a workmen's comp policy to cover contractors that may not have coverage of their own. If your services are being leased by the assn through a 3d party you would no longer be an employee but rather a contractor and the assn would not be required to maintan a workmen's comp ins policy just for you. This is what happens when the assn contracts with a mgmt co to provide a manager for the assn. But even a self-employed manager can be hired as a contractor instead of being put on a payroll, whereby the PM would obtain his/her own workmen's comp ins.

I know my assn carries workmen's comp but I don't know what the premium is. But our budget amount for ins (all types of coverage) for the year is only $3,200, so that lead me to believe we have very good rates.

All good questions! I guess I'm an "employee" because that's the way it's always been done. Either that, or no one ever really thought about it before.

My insurance agent is researching with his corporate office and the Colorado Dept of Labor, so I will get an answer I can follow through on, but I was asking here just to get ideas of what other people do.

I do appreciate the comments!

Hi Ann,

Yes, I claimed my income on my personal tax return. Just under the line for "additional income" where people put child support payments or other things.

Oh my...even more problems? And this time with the feds?

Maybe I should just quit as PM!