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Employees are eligible for workers' comp benefits whether they are paid an hourly wage or salary. Workers' comp does not, however, apply to independent contractors and the self-employed under Colorado law.
Exemptions from Colorado workers' compensation law Casual maintenance or repair workers who earn less than $2,000 per calendar year. Private domestic workers not working full-time. Private domestic maintenance or repair workers not working full-time. Real estate agents who are paid by commission.
Colorado state law mandates that businesses include contract labor workers in their workers' compensation policies. This requirement extends to all individuals who've received payment throughout the year, whether through 1099 forms, cash transactions, or even uninsured subcontractors.
Ing to the law in Colorado, independent contractor taxes must be paid by the contractor as they are also classified as self-employed. This means that if you are an independent contractor, you must withhold your own local, state, and federal taxes and submit your tax report to the IRS on your own.