The answer is a big yes! As a holder of a general contractor license in Florida, business owners of limited liability companies or LLCs and corporations can be included in the compensation coverage for workers and its connected premium cost determination. However, as the holder of a FL contractor license, you may opt out from this requirement and indicate your exclusion when you file for exemption via the website of the Division of Workers Compensation in Florida.
Even though partnerships and sole proprietorship’s cannot file for exemption in Florida, corporations and LLCs with a Florida contractor’s license should regularly exempt their officers or members from workers compensation coverage since this can substantially decrease their yearly premiums.
If A Worker Has An Exemption, Will They Be Entitled to Workers’ Compensation Benefits If They Get Hurt on the Job?
If an LLC owner or a corporate officer has an exemption, they are not entitled to workers’ compensation benefits if they are hurt on the job. So, if an officer or an owner gets injured and files for an exemption, they cannot make a claim on the policy of the holder of a general contractor license in Florida or on their policy.
Is Exemption Reliant on the Kind of Industry?
Rules on exemption are reliant on your main industry. Note that the rules are divided into rules for construction companies and rules for non-construction companies. Exemptions in construction are not as relaxed as compared to other industries. Construction companies can only file for a maximum of three exemptions, costing $50 for every officer or owner. This can get challenging if the LLC or Corporation has four and above owners because you cannot exempt all of them with ownership. Comparatively speaking, for non-construction companies, ten owners from the same company can be exempted without any related costs.
What Else Should I Know About the Renewal Process?
Perhaps one of the main things to consider as a holder of a contractor’s license in Florida is the renewal process of workers’ compensation exemption. The validity of exemptions lasts only for two years. Hence, this must be renewed for every officer or owner.
If there has been a failure to renew, or there is a gap between the renewal date and the expiration date, it is highly probable that your workers’ compensation carrier will incorporate the owner’s payroll amounts in the audit process. This means an additional premium amount on the compensation policy of your workers. Hence, it is critical that LLC members and corporate officers are updated with their exemptions.
At Contractors Reporting Services, we make sure that you get to renew your exemptions at the required date, given that you’re the holder of a contractor’s license in Florida. We give you the room to focus on your business while we concentrate on these administrative and human resources concerns. If you have any questions or would like help with regards to filing for a renewal of your workers’ compensation exemption, contact us and you will immediately get connected to a group of highly experienced professionals.