Workman’s Compensation Insurance Cabinet Makers
It is a requirement in Fl. that insurance in the form of workman’s compensation be carried by cabinet companies for employees. If the kitchen cupboard workers/makers or installers are registered exempt, then they will have to either be a sub-contractor, having their own corporation (or, LLC), or be an officer on the board of directors of the company that they work for. Other requirements are necessary, keep reading.
Can Cabinet Makers be Exempt From Workers Compensation Insurance?
For a Florida cabinet maker/installer to be exempt from having to carry the workers compensation insurance coverage, proof of being an officer of the corporation must be provided and a local business license submitted. Only three officers of the corporation can be registered exempt from workmen’s compensation coverage. The applicant must own at least 10 percent of the stock of the corporation as evidenced by a stock certificate or in the case of an LLC a notarized statement attesting to the minimum 10 percent ownership. There is a fifty dollar application fee that is due when the application is submitted complete. To read it for yourself go to Key Coverage. The fee will be due on semi annual basis. You can download the application to be exempt here. Application for Exemption
The only other out that I know of for providing workman’s compensation coverage for employees, without the business carrying the insurance policy, is by paying them through a labor agency. When this is done, there is a percentage added to the hourly wage of the worker that the labor agency gets. In these cases the agency handles all related book keeping and reporting of taxes, etc. Basically, all the business owner has to do is call in the hours worked and within a few days there will be a paycheck for the employee.
All workmen’s comp insurance coverage is provided through the agency. The percentage cost is very high though. But even so, it will be cheaper than having a policy if you’re a small cabinet company with a few kitchen cupboard makers as employees. Workers should never labor if the are not exempt or covered, the liability will be costly to the business owner if something happens.