Do I need a worker's compensation Insurance for my deli?

[fychan97]

I'm planning to start a deli.Me,my wife and a part time employee will be working there. I'm not planning to put either me or my wife on payroll. So the only person on the payroll will the part time employee.
Now i'm shopping around for liability insurance. Some of the agents says I have to have worker's compensation insurance as well. Do I really need that? I live in NJ

[ayize]

Some questionable advice, above, so pretend you did not read any of it, and follow along.

You are required to carry WC if you have 1 or more employees. The definition of employee is anyone who is the "servant" in a master servant relationship. The hours they work have nothing to do with it, nor does the amount or type of payment.

Evidently, you are operating as either a partnership or a sole proprietorship. You as owner are automatically EXCLUDED from coverage, but may optionally elect to be covered. If you want coverage for yourself, then you will be assigned a payroll for rating purposes, regardless of what you actually make. As of year end, 2011, you will be charged based on actual earnings subject to a minimum of $29,640 and a maximum of $118,040.

Same deal with partners, and members of an LLC.

If you are a corporation, however, then executive officers are automatically INCLUDED, but may elect to be EXCLUDED. Same minimum and maximum payroll assignments as above.

Be aware that your "remuneration," typically means "payroll," but includes many other forms of consideration, as well - not just the paycheck.

Your best bet is a consult with an accountant and/or attorney who is familiar with business law and can help you establish a business format appropriate to your needs.

I've given you some links to get you started. Remember, as with everything, "Certain restrictions apply, see store for details."

[banys]

If your business is a corporation, you cannot "elect" to keep you and your wife off of the payroll, in NJ. If you're a sole proprietorship, you still need to carry workers comp for your part time employee, in NJ.

There's no "only full time employees have to be covered" law ANYWHERE.

Also, NJ is a mandatory disability state - you must carry short term disability insurance coverage on EVERY employee, part time or full time.

I'm a bit surprised the agents you've been talking to, haven't mentioned that.

[dalon]

Yes. If you have any employee, then you need worker's comp insurance. Whether the worker is full time or part time, if the person works for you, then you really need worker's comp.

[hob97]

yes