Worker's Compensation Insurance?

[tacks]

Client gave me a bunch of tax documents which are simple enough.

But they also gave me a notice that they got from the Pennsylvania Dept of Labor, Bureau of worker's comp. The state requires that they carry it.

Is this something that tax preparers handle? I've never got involved with WC Insurance before.

Should i find a WC Insurance provider and have them get it? Or should i just put the notice back in their lap?

Any thoughts are appreciated.

Thanks

[KBTS]

PA Workers Comp

PA does require all employers to have WC insurance. This is the employer's responsibility to get the coverage. They can either get a policy through their insurance agent or through the state WC fund - which is usually the carrier of last resort for someone who cannot get coverage through a private carrier. Tell them they need to take care of this.

The only time I get involved in WC is for my payroll clients. I provide the payroll information needed for their policy end audit, since WC insurance is based on the amount of payroll.

[Lion]

Payroll

His payroll company may have an easy policy. I get my WC through QB where I do my payroll for my very part-time assistants. QB uses The Hartford. The Hartford deducts it from my bank account shortly after I transmit each payroll. I probably pay more, but it's quick and easy and doesn't require an annual check. They also accommodate seasonal employers, and some companies I contacted wouldn't pull with payroll if it wasn't a regular, year-round payroll.

[tacks]

Thanks guys, your responses are much apreciated.

I did call the PA Office telling them that i just recieved the notice and i will strongly urge my client to obtain insurance ASAP. The woman at the PA Office told me that they'd make a note on the acct that i did call. (can't hurt)

[BOB W]

Maybe I missed something here, but you said nothing about this client being a business, with employees..??

[tacks]

Hi Bob,

Sorry they're a corp with several employees.

And they ran their corp largely in a 'DIY' style for 10 mos before coming to me in March. Hence there's a lot of mess for me to clean up. And hence there's also other things that i'm not posting on here.

But they are, i think, decent people. And they did not hesitate to cut a check for me when i said i needed one before discussing their situation any further.

(i think that's a first for me. "You need to pay me now if you want to hear my thoughts." (that's not, of course, how i phrased it) But after wasting my time with 'free advice' seekers from Craigslist i had to toughen up)

[BOB W]

In NY failure to have WC give a penalty of MANY thousands of dollars per month. Hope PA is not as strict.

[tacks]

thanks again, Bob.

Knowing that will be very helpful to me. It will be helpful in explaining why i'm not rushing to get a big fat EIC for one of the shareholders. We could always get an EIC in October. Whereas there is other stuff here that is way past due and takes priority.

Anyway after speaking with the PA Dept of Labor it sounds as if PA might not be as strict. And we might have a little bit of time yet to get this straightened out.

[BOB W]

Was the Corp Extention filed on time? If not, there will be a $189(?) a month penalty for each month past due. The Corp return is due 09/15/10 if extention was filed.

[tacks]

I do believe that the corp extension was filed.

But generally speaking, can S corps be assessed penalties for late filed returns if they owe nothing? Does that 189 per month penalty only apply only to C Corps?

EDIT: Thanks for asking, BTW.

[BOB W]

I do believe that the corp extension was filed.

But generally speaking, can S corps be assessed penalties for late filed returns if they owe nothing? Does that 189 per month penalty only apply only to C Corps?

EDIT: Thanks for asking, BTW.

SCorps are penalized for filing late. Only on rare occassions does an SCorp owe a tax. They are a pass-thru entity.

[tacks]

Hi Bob,

Again, thanks very much for posting.

Only on rare occassions does an SCorp owe a tax. They are a pass-thru entity.

Yes, this much i do know.

SCorps are penalized for filing late.

Well then being as though this was the first year that i myself was an ERO and i'm using new software I'll have to go back and have a look at the 'Acks' to make sure all of the corp extensions were efiled in a timely fashion.