What is workers compensation?
To take the uncertainty out of the circumstances following a work-related injury or industrial illness, the workers compensation system provides a reliable procedure for resolving resulting problems. Broadly, if the injury occurs in the course of employment, regardless of whether the employer was negligent or otherwise at fault, the worker receives benefits that may include wage replacement, medical coverage, vocational rehabilitation or other assistance. The employee is not allowed to sue the employer for the injury and the employer must carry insurance or otherwise legally provide a means to cover workers compensation expenses. Most employers are subject to the workers’ compensation system, but some states exempt smaller employers, and most federal workers and certain national industries are covered instead by comparable federal programs.
A.) Workers Compensation is a system provided to help you recover benefits for injuries which occur on the job. It is a statutory system, and it is the sole mechanism by which workers gets paid for their job related injuries. Under the Workers’ Compensation system, regardless of fault, benefits are available.
Workers’ Compensation is insurance your employer must carry in the event an employee is injured on the job, becomes ill due to circumstances surrounding their job or even if death. Benefits include medical expenses, lost wages, specific loss benefits for amputation or loss of the use of an extremity, disfigurement benefits, and death benefits.
It is important to understand that Workers’ Compensation is a state-administered employee insurance system, and not a tax regulated by the IRS. Workers’ Compensation is for employees who fall ill on the job or get injured while working. It allows them to quickly access benefits required to pay for necessary medical care. While it is an added expense, Workers’ Compensation benefits employers by requiring employees to agree not to sue for job-related injury and illness. Check with your state’s Workers’ Compensation office to find out if you, as a household employer, are required to provide Workers’ Compensation insurance for your au pair or nanny.
