Workers' Compensation Laws
Requirements:
Businesses with five or more employees must carry coverage. With corporations or LLCs, officers and members are counted as employees. If there are more than four employees, workers’ compensation insurance is required.
Details/Exceptions:
Coverage isn’t required for businesses with four or fewer regular employees (full-time or part-time), other than businesses constructing or assisting on-site in the construction of new single-family, detached residential dwellings. Employers of household/domestic employees, farm laborers, or casual employees aren’t required to provide coverage, but have the option to. Sole proprietors can opt out of carrying coverage.
Options:
Purchased from a commercial carrier. Approved businesses may self-insure. Alabama doesn’t have state-administered fund.
https://labor.alabama.gov/wc/insurance.aspx
• Standard form – Exclusion/inclusion
Payroll Limitations for Owners Officers
As of 3/1/2018
- Executive Officer annual – Minimum $44,200, Maximum $176,800.
- Partner annual limitation – $43,800. LLC Member annual limitation –Minimum $44,200, Maximum $176,800.
- Sole Proprietor annual limitation – $43,800
Exemption Rule
Sole Proprietor: Excluded – can elect to be covered
Partners: Excluded – can elect to be covered.
Corporate Officers: Corporate officers are included – can elect to be excluded
LLC Members: LLC Members are treated as corporate officers – they are included in coverage however may elect to be excluded.
Wage Reporting
Quarterly wage reporting guidelines
- Alabama Unemployment Compensation Law, as amended, requires reports be filed online and taxes paid electronically only
Quarterly wage Form
- UC-10-D
Quarterly Wage Reporting Website
