First: If you are covered by the workers’ compensation law, you are required to obtain workers’ compensation insurance. You can buy this insurance privately from any insurance agency that sells commercial lines of insurance. You must obtain workers’ compensation insurance if you have three or more full-time or part-time employees. If you are in construction, however, you must have worker’s compensation insurance even if you have only one employee.
In other industries, many employers with only one or two employees buy workers’ compensation insurance even though not required by law. They do this because workers’ compensation insurance provides important protection for them and their employees. This is called “electing” coverage. If you have elected coverage, then you must file and pay the personnel assessment fee using form WC-1.
For more information about the requirement, contact the state Workers’ Compensation Administration (WCA) . Or you can request printed publications from the WCA.
Second: You also must pay the workers’ compensation personnel assessment fee. This fee is a quarterly tax payment to the Taxation and Revenue Department (TRD). It is not insurance coverage.