Educate and inform yourself in the basics of payroll

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What is Workers' Compensation Insurance?


Workers' Compensation Insurance (known as workers' comp or workman's comp) is a form of insurance that provides wage replacement and medical benefits for employees who are injured in the course of employment.


If an employee should incur a work related injury, either the employer or (if a payroll company is being used). the Employer of Record is liable for the cost of the damage to the employee. If Workers' Compensation Insurance is not in place, the employer or Employer of Record is then liable for a lawsuit on the part of the employee. The effects of a work related injury without Workers' Compensation Insurance can be devastating


Is Workers Compensation Insurance always necessary?


Yes. This is a MANDATORY insurance that MUST BE PROVIDED TO ALL PERSONNEL working on a production. This means all paid performers and crew members as well as volunteers and interns.


Workers' Compensation Insurance MUST BE PROVIDED FOR ALL INDEPENDENT CONTRACTORS as well. A production company is responsible for having a workers' comp policy in effect that will cover independent contractors in the event that the independent contractor does not have his or her own policy. The production company cannot ask the independent contractor to "sign off" or "waive their rights" to give up workers' compensation coverage. Such a document would be unlawful as well as unenforceable.


Remember – it is ALWAYS the responsibility of the production company/Producer to have coverage in place for ALL personnel – THERE ARE NO EXCEPTIONS!


Why must ABS have Workers Compensation Insurance for my employees, even when I have my own Workers Compensation Insurance already in place?


When an employee is put on payroll through ABS, ABS becomes the "Employer of Record." This means that an employee being paid through ABS is technically and legally an employee of ABS. ABS, by required law, must have Workers' Compensation Insurance in place for every one of its employees.


Do I need to purchase a separate Workers' Compensation Insurance policy in addition to the insurance that ABS provides?


Not necessarily. If all personnel are being paid through ABS, then it is NOT necessary to have another separate Workers' Compensation insurance policy. If, however, you are electing to pay some individuals (such as independent crew members) on your own (not through ABS), then you MUST obtain a separate policy for those individuals. That includes personnel that you may not actually pay wages to, such as unpaid interns.


Do I need to have all of my employees on payroll through ABS before they can be covered under the ABS Workers Compensation policy?


Yes. Any employees who are not on payroll through ABS ARE NOT COVERED by ABS's Workers' Compensation Insurance policy. Workers' Compensation for such "non-employees" becomes the sole liability of the production company/Producer (employer).