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The average cost of workers compensation in Alabama is $113 per month. Your workers comp premium is calculated based on a few factors, including: Payroll. Location.
Alabama state laws allows LLC members, corporate officers, sole-proprietors, and partners to exclude themselves from workers compensation coverage. Owners may elect to be exempt from insurance coverage by filing a written certification of their election with the state and the insurance carrier providing coverage.
How many employees must you have before coverage is mandatory? Any business that has five (5) or more employees, other than contractors, is required by law to have workers compensation coverage. The term employee includes all full or part-time employees, officers of a corporation or members of an LLC.
Alabama workers compensation law requires all employers that regularly employ five or more employees to have workers compensation coverage. Alabamas Workers Compensation Division administers the states workers comp system. Workers comp is important because it can help protect both employers and employees.
Unlike health insurance, there are no employee payroll deductions for workers compensation insurance. Workers compensation provides benefits to your employees if they get sick from their work or injured on the job.

People also ask

Alabama state law counts part-time workers, corporate officers and members of an LLC as employees. Some employees who dont need workers comp coverage include: Domestic employees working in private homes. Farm workers.
Although 1099 contractors arent required by law to have workers compensation insurance, they may choose to buy a workers compensation policy and pay the insurance premiums on their own for the workers compensation benefits it provides.
The good news is that workers compensation benefits arent typically taxable at the state or federal level. To put it another way, the monthly wage loss payments you receive are not considered taxable income.

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