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If you do not engage in completing paperwork such as the Texas Workers Compensation Independent Contractor Form daily, it may result in some misinterpretations.
Choosing the appropriate example from the outset will ensure that your document submission goes smoothly and avert any hassles of having to re-submit a file or redo the same task from the beginning.
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Generally, independent contractors are not employees of a company, so they are not covered by their workers' compensation insurance policy.
Independent contractors are not eligible for workers' compensation coverage; employers are not required by state law to purchase coverage for independent contractors. However, some employers misclassify employees as independent contractors to avoid paying payroll taxes and workers' comp premiums for them.
1099 vs W2 Employee for Workers Comp Insurance. The general rule is that employers do not have to carry workers' compensation insurance for workers who qualify as 1099 Independent Contractors.
Though it's not required by law, sole proprietors, independent contractors, and other self-employed individuals may elect to buy workers' comp insurance for themselves. Their clients might also require them to carry this coverage.
Some states, including Texas, don't require employers to have workers' comp insurance at all. If you're a freelancer, an IC, or a sole proprietor, you're legally self-employed and not automatically covered by workers' comp. Workers not classified as employees receive a 1099 form at the end of the tax year.