Avoiding Legal Troubles due to Workers Compensation
Businesses today need to be aware of a whole host of various issues if they want to keep themselves on the right side of the law. One such issue is workers compensation, and although it is a fairly easy topic to understand, actually staying legal under workers compensation is more difficult than some companies realize. Whether from mismanagement of employees or suffering through the hassles of traditional workers compensation implementation, the entire process can be more than a little bit stressful. Here are some basic considerations that you need to keep in mind if you want to stay legal under workers compensation law.
First of all, keep the basics of workers compensation in mind. Essentially you must pay out a certain amount in workers compensation payments for each of your employees. If they're injured on the job, workers compensation will pay for their medical bills and might help provide some money to offset any loss of income, depending upon where your company is located. Staying legal under workers compensation law essentially begins with making sure that you pay in the proper amount of money when you are supposed to. Of course, this is often easier said than done so you should plan on utilizing a software program to help you manage data about your employees and your workers compensation payments. Good software will save you tremendous hassles down the road.
If an employee is injured on the job but you suspect that something is amiss, you can challenge workers compensation claims. It's important to realize that the legal fees you may end up paying could be more than the actual fees from paying the workers compensation. Also remember that your workers compensation won't pay out anything to employees who are injured away from the jobsite. Most employers offer disability insurance of some form as a way to help their employees with issues not related to work, and it is a great supplement to workers compensation but not required by workers compensation laws.
Obviously, a lot goes into managing workers compensation. You'll have to keep track of each of your employees and the amount that you owe to workers compensation. But maybe worst of all is the actual hassles involved with getting a workers' compensation policy up and running. Most policies operate on estimates of salary and insurance costs, and you'll need to pay in huge upfront workers compensation payments and then wait until the end of the year to determine if you owe more or deserve a refund. Unfortunately, to determine either you'll have to undergo an annual audit from the workers compensation company. These audits are extremely stressful and a major hassle.
Alternatively you can use pay as you go workers compensation policies to avoid the large upfront costs and the yearend audits. These policies will still keep you legal under workers compensation law but involve much less work and much less money. Unicorn HRO can provide you with not only pay as you go workers compensation policies but also with software that makes managing workers compensation simple. For the easiest way to stay on the right side of workers compensation law, a combination of good software and pay as you go workers compensation is the best solution for any business.