All businesses that are involved in construction in Florida, including Tampa, are subject to a specific set of rules and regulations that govern the way that they do business.
We’ve compiled a list of the most important questions that will help prevent experience mod workers’ compensation overcharges.
Is my business classified as a construction business?
The best way to check this is to access the Florida Division of Workers’ Compensation which has published the official list of which business class codes are considered to be part of the construction industry. Here is a link to the list: https://www.flrules.org/gateway/notice_Files.asp?ID=10040390
For businesses in the construction industry, what are the requirements for workers’ compensation compliance?
Florida legislation for construction businesses requires either an active workers’ compensation policy or alternatively, a valid exemption for workers’ compensation. Even if you already have an exemption for yourself as the owner of the company, you will still need a valid workers’ comp policy that covers each individual that you employ.
The legislation stipulates that every employee that works on a construction site in Florida is required to be covered by a workers’ compensation policy (or hold a valid exemption). This ruling applies to both long-term employees and short-term hires that are brought on to the job site to help out.
How does an exemption work and can I apply for one?
You can apply for a worker’s comp exemption if you are a business owner, it allows you to be excluded from having to buy workers’ comp insurance for yourself. Note that this means that if you are hurt on the job, you will not be eligible to receive worker’s comp benefits.
In all cases, exemptions are only valid for the person and the company that have been listed on the exemption. For businesses in the construction industry in Florida, to be eligible for an exemption, the individual needs to be a part owner of a corporation or limited liability company and needs to have at least a 10% ownership share. Employees that do not have an ownership share are not eligible to apply for an exemption.
How does the application process work?
The applications for workers’ compensation exemptions are filed on the MyFloridaCFO website on the division of workers’ compensation page. Navigate here, and click on the option that says “Apply for an Exemption.” As per the website, construction industry exemptions attract a fee of $50 and must be renewed every two years to stay valid.
Do different rules apply for businesses and workers from different states working on projects in Florida?
Construction businesses that are registered outside of Florida, but that are completing work within the state are required to either obtain a workers’ comp policy that is valid in Florida or apply for a Florida endorsement for their out of state policy that will cover their operations in Florida. It is a legal requirement that out-of-state companies pay workers’ comp rates if they wish to work in Florida.
What process do I follow if I’m hiring a subcontractor?
Legislation in Florida stipulates that you are responsible for ensuring that all subcontractors and their employees either have their own workers’ compensation policy or that they hold a valid exemption that covers all workers on site. If you find that a subcontractor does not comply with the legal requirements, they will need to correct the issues before they can be allowed back on the job site. Failure to do so will result in your insurance company charging a premium to cover those workers; you are also at risk of having your insurance canceled as well as potentially attracting fines from the State Division of Workers’ Compensation.
Contractors Reporting Services in Tampa Fl has been helping builders with their paperwork since 1965, if you need assistance with workers’ comp policies or exemptions for your business, please get in touch.