As we have discussed before, all employers in Minnesota are required to have work comp insurance to cover their employees in the event that they are injured on the job. But what about freelance or self-employed workers? Do the same rules apply? This article focuses on work injuries and worker’s comp claims involving freelance or self-employed workers.
Employees vs. Freelance Workers
The first thing we need to discuss is the difference between an employee and a freelance worker. It’s an important distinction, as the rules and requirements for each are very different. Employees are on the company payroll and receive W-2 wages, and are covered under the company’s worker’s compensation plan (assuming the employer has work comp insurance).
By contrast, freelance workers are not paid W-2 wages. Instead, they are paid a fee for their work and receive a 1099 form at the end of the year for the work they’ve done. They are then required to pay self-employment taxes on that income. Freelance workers are not automatically covered under the work comp plan of the company for which they are performing work.
Self-Employed Work Comp
Self-employed workers have the option of purchasing their own work comp insurance policy, but it is not required by law that all freelance workers carry coverage. In freelance jobs that carry a high risk of injury, the contract with the company may require that the self-employed individual carry work comp coverage. Companies do this to avoid liability and work comp claims from arising.
Hey Workers is an accident injury help service dedicated to getting injured Minnesota workers the medical and legal help they need. If you or a loved one has been injured while doing freelance work, give us a call today at 844-Hey-Workers. Our team will connect you with physicians and attorneys in your area who can help you through all aspects of your case – both medical and legal. We are concerned, first and foremost with the well-being of injured workers. It’s what we do best, so let us help you! After a work accident, pick up the phone and call 844-Hey-Workers.
