Staff’ comp is commonly required in Florida, however exemptions come up for homeowners.
Right here’s how the Florida staff comp exemption works and when it applies.
Staff’ compensation insurance coverage is an important—and sometimes obligatory—a part of proudly owning a enterprise in Florida.
However when you’ve owned a enterprise for a while (otherwise you’ve spent sufficient time round insurance coverage brokers), you’ll have heard of enterprise homeowners submitting for a Florida staff comp exemption.
Submitting a staff’ comp exemption is a fancy situation that shouldn’t be taken flippantly. There are necessities that should be met and correct procedures to comply with.
So what precisely is a staff’ comp exemption, how does it work, and is it best for you?
Fast reply: when a Florida staff comp exemption applies
- If your small business shouldn’t be required by regulation to hold staff’ comp as a result of you’ve fewer than the required variety of workers, you usually don’t have to file an exemption.
- A staff’ comp exemption issues whenever you meet the authorized requirement to hold staff’ compensation, however wish to exempt an officer, proprietor, or director.
- Exemptions apply to officers/administrators/homeowners solely. The regulation doesn’t enable exempting rank-and-file workers if your small business is in any other case required to hold staff’ comp.
What Is a Florida Staff’ Comp Exemption?
Staff’ comp insurance coverage is a particularly useful kind of protection, in that it protects you from expensive authorized and medical bills within the occasion an worker is injured whereas on the job.
A critical damage or sickness may result in the necessity for lifelong therapy. Employee’s compensation covers this inside the bounds of your coverage in order that your checking account doesn’t should.
Beneath Florida regulation, companies should carry staff’ comp insurance coverage if they’re:
- a development enterprise with one (1) or extra workers (together with company officers and LLC members);
- an agricultural enterprise with six (6) common and/or 12 seasonal staff who work between 30–45 days a yr;
- a non-construction company or LLC with 4 (4) or extra workers; or
- a state or native authorities workplace.
Companies that don’t meet these necessities (an accounting agency with solely two workers, for instance) usually are not required by regulation to hold staff’ comp protection. (This doesn’t imply they don’t want it, simply that the regulation doesn’t require it.)
Nonetheless, some companies who do meet these necessities (as an illustration, an accounting agency with 10 workers) may select to file for a staff’ comp exemption in an effort to lower your expenses on their premiums.
A Florida staff comp exemption permits companies to exclude their officers, administrators, and homeowners from the state’s requirement to have staff’ comp protection. Staff’ comp exemptions solely apply to officers/administrators/homeowners; the regulation doesn’t enable any enterprise to exempt rank-and-file workers from in any other case obligatory staff’ comp protection. Be taught extra about exemptions from Florida’s Division of Staff’ Compensation.
What it does (and doesn’t do)
- Does: exclude sure officers/administrators/homeowners from the requirement to be lined.
- Doesn’t: exempt common workers from staff’ comp if your small business is required to hold it.
Do You Have to File an Exemption?
This half journeys up quite a lot of enterprise homeowners, so right here’s the best approach to consider it.
If you’re below the required worker threshold
If in case you have lower than the required quantity of workers for staff’ comp protection and also you’re opting out of staff’ comp, there’s no have to file for an exemption.
If you happen to meet the authorized requirement however wish to exempt homeowners/officers/administrators
A staff’ comp exemption is just vital when you meet the authorized necessities for carrying staff’ compensation however are selecting to exempt an officer, proprietor, or director of the corporate.
If you happen to wouldn’t have an lively Discover of Election to be Exempt, the Florida Division of Staff’ Compensation can high quality you. File or handle a Discover of Election to be Exempt on-line.
The way to File a Florida Staff Comp Exemption
State workers carry out common subject inspections to make sure that companies are complying with the regulation. If a enterprise doesn’t carry staff’ comp, suits the statutory requirement to have it, and has not filed for an exemption for its homeowners/officers/administrators that brings them out of the statutory requirement, they are going to be fined.
Purposes for staff’ comp exemptions should be made on-line by the Florida Division of Staff’ Compensation.
For companies within the development business, a $50 payment will apply (that is used to carry out an audit). There isn’t a value for LLCs or non-construction firms.
You’ll have to renew your certificates each two years.
Ought to I File for a Florida Staff Comp Exemption?
Staff’ comp insurance coverage is an effective way to guard your workers from the misplaced wages and medical payments that come on account of a office accident. Additionally they shield your small business from being sued by a litigious worker usually.
Any enterprise—particularly these in riskier industries—ought to by no means be with out it.
LLCs and firms generally exempt their officers from protection, which reduces premiums. Nonetheless, the potential prices of a lawsuit (or paying for medical prices out-of-pocket) are well worth the comparatively minor funding of carrying this protection within the first place.
A sensible approach to weigh it: the premium financial savings can really feel fast, however the monetary publicity reveals up when one thing goes mistaken. And in a office, one thing finally goes mistaken—even when it’s only a “regular day” accident.
Defend Your Property
Dangers, by their very nature, are unpredictable. No enterprise proprietor, supervisor, or worker can forestall a office accident 100% of the time.
A staff’ comp exemption could prevent a couple of dollars in insurance coverage premiums, however the cash you’ll save is nothing in comparison with the quantities you’ll have to spend if and when a office accident occurs.
Proudly owning a small enterprise is a dangerous enterprise. Having the precise degree of insurance coverage helps to ameliorate a few of that threat.
If you’re on the lookout for complete insurance coverage to your small enterprise, we sit up for assembly with you and discussing your small business, your targets, and your wants. Request a quote at the moment.