Worker’s Comp Payroll Alternatives

Recently I wrote about workers comp and discussed the difference between Independent Contractors and Employees as it relates to whether an employer should be paying workers compensation premiums.

As previously mentioned, you may need to consult with an attorney in order to get more detailed legal advice. I am not a law professional, but through my insurance education and during some legal classes I took during the course of obtaining my Business Management degree, I do know that courts will typically sympathize with the employee, rather than the employer in a claim case where there has been question as to whether someone is a true independent contractor or an employee.

I also received some feedback, specifically some info below from Aaron Henry in a portion of an email that was sent to me that may be of interest:

“MBO Partners – drew my attention to your blog yesterday on IC’s and the possible need for their employers to carry coverage, even if they are paying employees as 1099 contractors.  I don’t know if you are familiar with PER’s, which contract with clients to allow them to service their Independent Contractor’s as W-2 employees instead of 1099 employees – and also offer insurance, health and retirement benefits.  My client’s site is  They are reaching out right now to freelancers in the entertainment industry (and work already with a number of Fortune 500 companies)”.

Thanks Aaron for the information!

I personally am familiar with PEOs, they provide similar services as the above. I agree with Aaron that this could be of help to those of you who wish to treat your independent contractors as employees.

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