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Published on Sep 18
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Electing Workers’ Compensation coverage for sole proprietors and partnerships
While the Bureau of Workers’ Compensation requires all employers with one or more employees to carry workers’ compensation, coverage for sole proprietors and partners with no employees are optional. If you elect not to cover yourself and you sustain an injury in the workplace, BWC doesn’t provide coverage. To compound matters, your private insurance or other business policies may not cover work-related disability or medical bills. While optional, workers’ compensation coverage can help protect your health and health of your business. Continue reading to learn more about elective coverage for sole proprietors and partners.
Benefit
When you elect workers’ compensation coverage as a sole proprietor or partnership, you gain the ability to better protect your business. Coverage allows you to report injuries sustained in the workplace against your policy and, upon approval from BWC, injury-related medical bills and lost time wages can be paid. Receiving lost time wages from BWC, you will allow you to focus on healing from your injury and returning to work faster knowing that your business will be secure.
Electing coverage
Sole proprietor and partnership coverage requires you to complete the Application for Ohio Workers’ Compensation Coverage (U-3). If you add additional partners at a later date, you must complete the Application for Elective Coverage (U-3S). Your elective coverage is effective the date BWC receives the application.
Payroll reporting
To secure your elective coverage, you must report the wages of yourself and your partners to the BWC and pay the appropriate premiums based on the net income you report. If you have employees, you do not report your payroll in the same manual category as your employees. Elective coverage payroll should be reported to manuals with the Supplemental NCCI (SN) suffix.
For elective coverage, reportable wages are subject to a minimum and maximum payroll reporting requirements based on the statewide average weekly wage, which is calculated annually by the Ohio Department of Job and Family Services. BWC will cancel your elective coverage if you fail to report at least the minimum required amount of payroll for any reporting period that your coverage is in effect.
Protecting your health
Elective workers’ compensation coverage for yourself and your partners can help protect your health and the health of your business. If you do no elect coverage and are injured in the workplace, BWC will not provide coverage. Rather than leaving the financial health of your future and that of your business up to chance, consider your workers’ compensation options. If you have questions about how workers’ compensation rules apply to your sole proprietorship or partnership, Sheakley is here to help.
Contact a Sheakley Workers’ Compensation expert today to learn more about your workers’ compensation coverage options. Working with more than 16,000 employers across Ohio, Sheakley’s Workers’ Compensation team has the experience to help you make the best decisions for your organization.
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