Skip to main content
December 28, 2023
Question

Worker's Comp insurance

  • December 28, 2023
  • 1 reply
  • 0 views

I have an LLC in California, elected to be taxed as an S Corp, and I am both the sole owner, sole member, and the sole employee as the owner.  I was told by ADP that because I am the owner paying myself a W2 for the S Corp, that I do not need to have worker's comp insurance.  Is this correct?  And if so, is it being withheld from my payroll even though I don't have to pay it?

1 reply

December 28, 2023

I'm  here to share insights about the workers compensation insurance, @DI124

 

In California, every employer, including those operating as an S Corporation and paying themselves as an employee, is generally required to have workers' compensation insurance. This requirement applies even if you are the sole owner and sole employee of the S Corporation. It's important to comply with the state's regulations regarding workers' compensation to ensure legal compliance and protect your business.

 

I recommend reaching out to the appropriate state authorities or a qualified professional in California to obtain specific guidance on the workers' compensation requirements for S Corporation owners who are also employees. They can provide you with accurate information tailored to your situation and help ensure that you are meeting all necessary legal obligations.

 

Understanding and adhering to the workers' compensation regulations in California is crucial for your business, and seeking guidance from the appropriate authorities or professionals can help you navigate this aspect of compliance effectively.

 

To find out more if you need it, how to get it, and how to manage workers’ comp automatically with Pay As You Go, please see this article: Understand workers’ compensation insurance.

 

If you wish to get a quote, sign up, or check the requirements, please see this page: Workers’ Compensation Insurance Information.

 

Additionally, you can run, print, and customize payroll reports to get a closer look at your business finances, employees, and taxes in QBOP. To do these processes, you may want to check out this article for your reference: Run payroll reports.

 

Please let me know if these anything else you need or questions about workers' compensation insurance in QBOP. I'm always ready to help.