Wisconsin Workers Compensation Insurance

Wisconsin Workers Compensation Insurance Rules

1. Does my Wisconsin business need workers compensation insurance?

Yes, employers with three or more full-time or part-time employees must provide workers compensation insurance.

If you employ one or more full-time or part-time employees, for whom your gross payroll reaches $500 or more in any calendar quarter, you must obtain workers compensation insurance coverage.

2. In Wisconsin is there any exemptions from carrying workers compensation insurance?

Sole proprietors that have no employees are not required to carry worker’s compensation insurance in Wisconsin.

Partnerships that have partners only and no employees are not required to carry worker’s compensation insurance in Wisconsin.

Limited liability companies that have members only and no employees are not required to carry worker’s compensation insurance in Wisconsin.

3. Does Wisconsin workers compensation law have specific requirements for subcontractors/contractors and sole proprietors?

A person is required to meet a nine-part test in Wisconsin before he or she is considered an independent contractor rather than an employee. A person is not an independent contractor for worker’s compensation purposes just because the person says they are, or because the contractor over them says so, or because they both say so, or even if other regulators say so.

To be considered an independent contractor and not an employee, an individual must meet and maintain all nine of the following conditions:

1. Maintain a separate business

2. Obtain a Federal Employer Identification number from the Federal Internal Revenue Service (IRS) or have filed business or self-employment income tax returns with the IRS based on the work or service in the previous year.

3. Operate under specific contracts.

4. Be responsible for operating expenses under the contracts.

5. Be responsible for satisfactory performance of the work under the contracts.

6. Be paid per contract, per job, by commission or by competitive bid.

7. Be subject to profit or loss in performing the work under the contracts.

8. Have recurring business liabilities and obligations.

9. Be in a position to succeed or fail if business expense exceeds income.

Employee Leasing and Staffing Companies

Using a PEO or staffing company to obtain your workers compensation may be a good alternative to purchasing your own workers compensation policy. Leasing companies handle your payroll, w-2 forms, unemployment and workers compensation claims. In many cases the down payment required to obtain a new workers compensation policy is high and many new businesses cannot afford the down payment. Another advantage, based on my experience, is that you will never get audited because you pay as you go for your coverage. We represent numerous leasing and staffing companies who in many cases offer deep discounts on your workers compensation coverage that you will not find from standard workers compensation insurance carriers.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

If you need a quote that requires this coverage

Click Here for a USL&H Quote

Click here for the complete USL&H Act, courtesy of Cornell University.
Click here for: USL&H & Jones Act Information
Defense Base Act Division of Longshore and Harbor Workers' Compensation

Wisconsin Workers Compensation Insurance

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