Illinois law requires employers to obtain workers' compensation insurance, but a small percentage of employers fail to comply. These employers enjoy an unfair competitive advantage over law-abiding companies, while leaving their employees vulnerable if accidents should occur. Under Section 4(d), an employer that knowingly and willfully fails to obtain insurance may be fined up to $500 for every day of noncompliance, with a minimum fine of $10,000. Corporate officers can be held personally liable if the company fails to pay the penalty.
You only need to have one employee to come under the WC Act. If you have one employee, even a part-time employee, you must obtain workers' compensation insurance.
An out-of-state company conducts business with its employees in Illinois, i.e., does any work at all in Illinois, even if all the workers reside in the same state as the company, that company must provide a workers' compensation insurance policy that includes Illinois coverage for those workers.
According to Section 1(b)2 of the Act, Illinois law covers
- Persons whose employment results in injury within Illinois, or
- Persons whose work is principally localized within Illinois, or
- Persons whose contract of hire was made in Illinois.
Recommendation:
XactPAY® is The Hartford's integrated payment service that calculates insurance premiums for a Hartford Workers' Compensation policy which amount is then withdrawn directly from your bank account every time you run payroll. Rather than paying for insurance up to a year in advance and tying up vital cash, premiums are paid as you go one payroll period at a time!
Your Hartford Workers' Compensation premiums will be based on actual payroll data which will:
- Eliminate large down payments
- Eliminate finance and billing fees
- Eliminate late fees
- Eliminate the need to write checks
- Potential to minimize audit adjustments
- Allow for better cash flow management
To be eligible your small business must:
- Meet The Hartford's underwriting guidelines
- Purchase a WC policy from The Hartford
- Run your payroll through one of our payroll service provider partners
- Run payrolls on a regular, consistent basis
- Have a checking account with EFT capabilities
Each time run your payroll, QuickBooks sends your payroll data to The Hartford. XactPAY® then calculates the Workers' Compensation premium for that payroll period based on the payroll processed. If you elect, The Hartford will provide notice to you of the amount and timing of each expected withdrawal from your bank account. The Hartford draws the premium payment for your Worker's Comp policy from your account based on your actual payroll data for the applicable period.
Getting a quote is simple, fast and effective. Just email or fax the following information to thughes@hughesgp.com
- Company name
- Company address
- Type of entity ( Corp. , Partnership, Sole Prop.)
- Number of employees
- Average annual payroll
- Type of business (Electrical, Gardening, Accounting)
- Number of years in business
- What type of payroll processing system currently being used
Posts
