Recently I’ve been helping a number of small business owners sort through the confusing topic of Workers Compensation Insurance.

 Contractors who hire  workers as 1099 employees can get confused as to who they are responsible to cover.

 It gets a little tricky when they hire some legitimate contractors who may have their own coverage and some of the people they may hire for a few days  to help with a big job.

If  you hire another contractor like a plumber or electrician who has his own Workers Compensation policy, make sure you get a copy of their certificate for your audit at the end of the year or you could end up having to cover them.  You are charged a percentage of what you paid them.  It’s about 14.5% .

 Just because you hire someone as a 1099 employee does not let you off the hook for Workers Compensation Insurance.  A lot of contractors are having their guys go get their own Liability Insurance. That’s OK but it will not mean that you won’t have to pay for their Workers Compensation Insurance.

 If you hire guys (or gals) who have an LLC or have formed a corporation they will either need their own coverage or a form of exclusion from the state.

Hopefully this helps. Please feel free to call me at 231-744-9099 or start by visiting my web site at www.muskegoninsuranceagent.com for more information.

Some Michigan small businesses have hundreds of employees, others have as few as one, but Farm Bureau Insurance and the Steve Bedgood Agency are making a big effort to bring 401(k) retirement protection to all sizes of small businesses across the state.
“We are now offering a low-cost 401(k) plan aimed exclusively at Michigan small businesses,” said Craig Foerch, pension marketing sales specialist for Farm Bureau Insurance. “It gives them the same 401(k) advantages and features that huge companies enjoy. In just one package, we can meet all the 401(k) needs of a Muskegon small business.”
The plan allows employees of small Muskegon companies to contribute pre-tax dollars into their own retirement accounts, helping them build a retirement nest egg and save on taxes.
“If you’re a small-business owner, this plan is a great way to attract and retain employees,” Foerch said. “Not only will your employees enjoy tax savings from their plan contributions, but the interest they earn in their accounts is also tax deferred. In fact, this plan may be their best opportunity to achieve a secure retirement.”
According to Foerch, the plan offers several features attractive to Muskegon small-business owners:

• “Safe-Harbor” design, which means simple and easy rules for employee participation
• Low set-up and administration fees
• 20 no-load mutual fund options representing various asset classes (Vanguard, Fidelity, American Funds, and others) monitored daily for quality assurance.
• Asset allocation funds available in aggressive growth, moderate growth, conservative growth, moderate income, and conservative income categories
• Individual internet access so employees can monitor their own accounts
• Loans permitted
• No surrender charges and no hidden fees
• Profit sharing feature and Roth feature can be added.

“For small businesses, this plan is low cost, low maintenance, and easy to administer,” Foerch said. “It’s a very positive program to offer to your employees. It offers the kind of security that people are really looking for today.”
To learn more about this 401(k) opportunity and how it can help your small business, contact me at www.muskegoninsuranceagent.com.

Also, feel free to call me at (231) 744-9099.