Staffing agencies have some of the most complex workers comp situations of any business type. You employ workers who perform jobs at client sites across multiple industries, each with its own risk level. Getting workers comp right as a staffing agency requires careful attention to how your employees are classified.
Who Is the Employer for Workers Comp Purposes?
In most states, the staffing agency is considered the employer of record for workers comp purposes, even though workers perform their duties at a client’s location. This means the staffing agency is responsible for carrying workers comp coverage on temporary workers, not the client company.
Class Code Complexity in Staffing
Staffing agencies often place workers across many different industries. A clerical temp working in an office has a very different risk profile than a warehouse temp doing physical labor. Workers comp premiums for staffing agencies are calculated based on the actual job duties of placed workers. Misclassifying all workers under a single code, or under the wrong code, can result in significant overpayment or a large audit bill.
How Payroll Reporting Works for Staffing Agencies
Staffing agency workers comp premiums are typically calculated on actual payroll reported throughout the year. Because staffing levels fluctuate, mid-year payroll reporting and accurate end-of-year audits are critical to keeping your premium aligned with your actual exposure.
Get a Free Staffing Agency Workers Comp Quote
Comp Matters Inc. understands the complexity of staffing agency workers comp. Call (631) 248-2500 for a free quote from multiple carriers.
Recent Comments