Solutions:  Being Exempt from Coverage

 

Requirements to Obtain Coverage/Comply with state statutes:

 

Before we get started on this solution, you need to first understand who is required by the State of Florida to have coverage. 

 

For individuals/firms in the Construction industry:

 

If you have 1 or more part-time or full-time employees, you are required to obtain workers' compensation.

 

Note:  Sole proprietors, partners, members of a LLC and corporate officers are considered employees.

 

For individuals/firms in a Non-Construction industry:

 

If you have 4 or more part-time or full-time employees, you are required to obtain workers' compensation.

 

Note:  Members of a LLC and corporate officers are considered employees. 

 

Exemptions:

 

If you are required to obtain coverage/comply with state statutes, there are multiple ways to achieve this.  One potential way, is to file for an exemption from coverage.  Not everyone can though, so let's go through who can file for an exemption:

 

First off, any individual desiring to obtain an exemption must have a Federal Employer Identification Number (FEIN), unless the employer is a single member Limited Liability Company.

 

For individuals/firms in the Construction industry:

 

Sole Proprietors

Partnership

LLC - (up to 3 members who own at least 10% of the business)

Corporate Officers - (up to 3 corporate officers who own at least 10% of the business)

 

For individuals/firms in a Non-Construction industry:

 

LLC - (up to 10 members who own at least 10% of the business)

Corporate Officers

 

Exemptions are valid for a period of 2 years or until a revocation is filed or until revoked by the Division.

 

Pro's:

 

Fulfills the obligation for complying with state statute for worker's compensation. 

 

Con's:

 

There are very serious consequences of utilizing exemptions:

 

  1. An exemption provides no coverage to the individual that is filing for the exemption.

  2. An exemption provides no coverage for any casual labor/employees.

  3. An exemption provides no coverage for any subcontractors.

 

 

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