Requirements to provide WC coverage In Florida, any employer in an industry, other than construction, and who has four (4) or more employees, full-time or part-time, is required to carry WC coverage. For the construction industry, if the employer has one or more employees, including themselves, they have to carry WC
coverage and if the employer is a state or local government, they are required to carry the coverage, also. Farmers have other requirements. An employee can find out if their employer has WC coverage by contact the Employee Assistance and Ombudsman Office or email wceao@myfloridafo.com.
CLASSIFICATION OF SALON WORKERS
Businesses- &- Self-Employed/Independent-Contractor-Self- Employed-or-Employee. There is an abundance of information on the topic. The Professional Beauty Association (PBA) states that most salon owners rely on independent contractors to work in their salon. Today, more than 90% of all salons have no direct employees, meaning they either have just one person cutting hair or rely completely on independent contractors. Meanwhile, more than a third of all hairdressers, stylists, and cosmetologists are self-employed, compared to just 7% of the overall workforce (thinkprogress.org). It is Critical to understand the Classification of salon workers because much is based on this categorization . If an individual is an employee, they need to ensure their employer is paying their employment tax, as well as WC for the individual. At this time, this individual (employee) has little freedom to run his business as he wishes, but also has less financial costs. If the individual is a booth renter in a salon, they are self-employed and categorized as an independent contractor. The salon owner has very limited control over the worker, but does not have to pay employment tax, insurance, and WC. Many salon owners may have a lack of knowledge when it comes to employee labor laws, so it is the responsibility of the worker, as well as the salon owner to know their tax responsibilities. The independent contractor has quite a few freedoms but must be diligent in paying their own self-employment taxes, income tax, medical insurance, etc. The IRS provides information for both the owner and worker of a salon on how to classify a worker. This information is easy to understand, unlike the complicated tax forms. Go to IRS at https://www.irs.gov/Individuals/Self- Employed.
In many businesses including the salon industry, there exist unscrupulous salon owners who will exploit workers in the cosmetology field by not classifying them correctly with the Internal Revenue Service (IRS). The worker may indeed be an employee, and fit the IRS definitions of an employee, but to save on WC costs, employee taxes, etc.…, the owners categorize the worker as an independent contractor/booth renter. By classifying a worker this way, the worker is actually “self-employed” and responsible for their own taxes and insurance, relieving the salon owner of any WC expenditures. The IRS and many states have adopted common law principles to define an independent contractor. These rules focus primarily on the level of control an employer has over a service or product, meaning, whether or not the employer actually defines what is being done and how it will be accomplished.
If any questions arise as to whether a worker is an employee or self-employed, go to the IRS webpage, Small Business and Self- Employed Individuals @ https://www.irs.gov/Businesses/Small-
THE PROCESS OF A WC CLAIM IN FLORIDA
Understanding the process of how a claim is filed and what the injured worker’s, employer’s, medical doctor’s, and insurance companies’ responsibilities are empowers all stakeholders. Knowledge is power. The injured worker has certain duties to complete after an injury or occupational illness occurs. The first duty is to tell the employer as soon as possible about the injury. The law requires the worker to report the accident or knowledge of a job-related injury within 30 days of their own knowledge of the accident or injury . → EMPLOYER Report injury to employer ASAP or within 30 days of injury/accident. The injured worker must ask the employer what doctor they can see. The doctor must be authorized by the employer or the insurance company . If the employer is not available, and the injury is an emergency, then the worker must be transported to the nearest emergency room and inform the employer as soon as possible. The employer is required by law to report the injury to the insurance company within seven (7) days of when the report or accident was reported to them. They may tell the injured worker to call the insurance company handling the claim. If the employer does not give a phone number to the insurance company and does not report the injury to the insurance company, the worker needs to call the WC hotline for assistance at (800) 342-1741.
EMPLOYER Report injury to employer ASAP or within 30 days of injury/accident.
INSURANCE COMPANY Employer required to report to insurance company within 7 days of knowledge.
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After the report is filed with the insurance company, most will have an insurance adjuster call the injured worker within 24 hours to explain the worker’s rights and obligations . If a message is left on voicemail, they will expect the injured worker to call as soon as possible so the injured worker knows where to go for medical treatment. Within 3-5 business days after the employer or the injured worker has reported the accident, an informational brochure is sent to the injured worker and a Notification Letter explaining the services provided by the Employee Assistance Office of the Division of Workers’ Compensation. Some forms may be sent as well. These forms may include the following: ● Copy of the accident report or First Report of Injury or Illness. ● A fraud statement which must be read, signed, and returned so benefits are not withheld. ● Release of medical records for the injured worker to sign and return. ● Medical mileage reimbursement forms to complete after seeking medical treatment and send to the claims adjuster for reimbursement.
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Book Code: NTFL1024
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