If your business is a sole proprietorship, you—as the owner—are automatically excluded from workers' comp. Also, since the State of California labor code considers spouses to be co-owners, you can exclude your spouse (again, if you are a sole proprietor).
Who is exempt from workers' compensation in California?
- California workers’ compensation exemption laws apply to different types of business owners, such as corporate officers, directors and members of a LLC if they aren’t employees of the business. 4 Because exemption laws vary between states, it’s important to make sure you know what types of businesses are exempt in your state.
How to become workers comp exempt?
- Employee information
- Details on the type of business you own
- Up-to-date business license
- Proof of ownership
- Contact information for your workers’ compensation insurance carrier
Who qualifies for a workers' compensation exemption?
- Workers’ compensation insurance is regulated by state governments, and every state is different in terms of what types of businesses and employees qualify for workers’ comp exemptions. However, there are some types of businesses and employees that are generally exempt, such as: Independent contractors; Sole proprietorships; Partners; Members of LLCs; Employees who work few hours or make little each year; Volunteers; Again, it’s important to remember that exemptions vary by state. For a ...
Is workers compensation taxable in California?
- Whether you receive wage loss payments weekly or in the form of a lump sum settlement, workers’ compensation is not qualified to the taxable. In California, injured workers receiving benefits from workers’ compensation are not subjected to taxes at the state or federal levels.
In California, the vast majority of workers are covered by workers' compensation. Any employer who has even one employee must have workers' compensation insurance. There are no exceptions for employees who work part time vs. full time, nor are there any exceptions for seasonal workers.