Training/Employee or Independent Contractor?
Employee or Independent Contractor?
approx. duration: 2 hours
Instructor(s): Ron Cooper, Duane Schroeder
WC Theory - Trade Risk for Certainty
No fault (some exceptions)
Medical care & rehab
Employers assumption of financial responsibility for all work-related injuries
Creates an uneven playing field for those who follow the law
Undue burden for the true independent contractor to please others' insurance requirements
Contentious premium audits and related dispute resolution proceedings
Reduced credibility of the ratemaking database
"Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax
"Employee means every person, including a minor, in the service of another, under any contract
of hire or apprenticeship, written or implied, except one whose employment is both casual and
not in the usual course of the trade, business, occupation, or profession of the employer."
Reference IC §22-3-6-1 (b)
Waiver of WC by Employee
Prohibited as per IC §22-3-2-15
Independent Contractor Definition
"A person is an independent contractor in the construction trades and not an employee under IC§22-3-2 through IC §22-3-6 if the person is an independent contractor under the guidelines of
the United States Internal Revenue Service."
Reference IC §22-3-6-1 (b) (7) and IC §22-3-7-9 (b) (5)
IRS Form SS-8
Relationship of the Worker and Firm
Service Providers or Salespersons
Issue determination or information letter
When?After workplace accident
Relationship at time of injury
Who Decides Who's Who?
Certifies person is an independent contractor
Certifies person has WC insurance or is a qualified self-insurer
Person desires to be exempt
Foregoes the right of recovery from anyone for whom this person works as an independent
Indiana Court of Appeals Decisions
Independent Contractor "Clearance Certificate" Clearance #45899
Holds harmless any person and their carrier contracting with the above named person (as an independent contractor)
Independent Contractor "Clearance Certificate" Trivia
Valid for 1 year
$5 DOR fee
$15 WCB feeEffective 7 days after stamped by WCB
Contractor who assists employees in filing a false statement for independent contractor status commits a Class D felony.
Real estate professionals
Independent owner operators
Carriers Right to Charge a Premium
If Uninsured Subcontractor,
General Contractor Pays...
Full contract price, or
Part that represents payroll, at least:
50% L&M contract
90% Labor only33% Vehicle contract
What? No Coverage!
What Do I Do?
certificate of insurance
certificate of exemption (if in construction trades)
payroll amounts of a contractor
confirm status with carrier at inception