Workers’ comp is the most criticized insurance policy. Most employers think worker’s comp as some sort of tax while others just sign a check and move on. Nonetheless worker’s comp is unique for a variety of reasons. However, most of these references are not applicable to all the states and there are exceptions.
First, workers’ comp is an employer-driven changeable insurance. Health insurance premiums are now appearing on W2s. You will not see workers’ comp appear on a 1099 (IRS Form), any check stub, or a check that a subcontractor or an employee receives from the contractor or employer (only exception is Washington state).
Next, The National Council on Compensation Insurance and the Workers’ Compensation Insurance Rating Bureau are the primary bureaus covering a large swath of the country. They establish the rates for most of the country. Nonetheless, insurance companies can easily digress from them.
States control every paying benefits aspect. There aren’t any states’ systems that have similar functions. Workers’ comp isn’t a “cookie cutter” type of insurance although some similarities do exist across the states.
Although we can’t travel in a time machine and predict the future we know that most insurances will continue to thrive. However, when it comes to workers’ comp, it might continue in its present format much longer as talks of national regulation continue to float around.
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