We’ve been a simple freelancer sole prop Schedule C operation, but now we’ll be having an employee, my husband. Will we need to obtain Workers Comp, and do we need payroll help if we use a MERP? : FAQ/Blog/Solutions
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We’ve been a simple freelancer sole prop Schedule C operation, but now we’ll be having an employee, my husband. Will we need to obtain Workers Comp, and do we need payroll help if we use a MERP?

by Tom Luker on 05/01/15

You might, but that is for your tax professional, regarding payroll, or your insurance professional, regarding Workers Comp to help you determine.

  • It might be especially helpful to have an outside “payroll department” so you can concentrate on operating the profit end of the business.
  • As additional EEs come on board, it’s even more important that you consider payroll help, so all of the IRS complexities are met including, but not limited to, IRS, DOL and State payment schedules. 
  • It’s often asked if the spouse-EE needs to be covered for Workers Comp [WC]. States have varied rules, most allowing the spouse to be exempt for the Sole Prop. So you should check your state rules with your insurance professional.
  • TLC’s accountant, who is a sole prop, was able to arrange that his wife and daughter, both EEs, in addition to himself, were covered by Workers Comp.
  • He had an accident going into an office-supply store to buy supplies and was fully covered by WC for the bad injuries incurred. Because he was engaged on a business purpose the WC benefits kicked in!

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