South Carolina workers’ comp 101
Workers’ compensation insurance can help ease your mind that your business and your employees are protected in the case of any work-related injuries or illnesses.
Insurance helps finance any necessary medical treatment for your employees, among other coverages such as transportation to and from medical treatment, and compensation for any missed work due to work-related injury or illness.
Read on to learn more about what to keep in mind as you navigate workers’ compensation coverage for your South Carolina business.
Who is covered under South Carolina workers’ comp?
Part-time workers and family members are considered employees and must be included as employees covered under workers’ compensation coverage.
Under the Workers’ Compensation Act, nonprofit and for-profit organizations are treated the same way in terms of workers’ comp insurance. If your business is a non-profit organization that employs four or more employees, you’re required to maintain this type of insurance coverage.
If you’re a general contractor, you’re required to have workers’ comp insurance. Employees of a subcontractor are statutory employees of a general contractor. In the case of subcontractors that neglect to maintain their own workers’ compensation insurance coverage, a general contractor is liable for their statutory employees.
If you’re a subcontractor with fewer than four employees, your general contractor may still require you to obtain workers’ compensation coverage. The general contractor may do this to avoid the liability of a workers’ compensation claim from an uninsured employer or subcontractor.
Not sure who qualifies as an independent contractor? An independent contractor is someone who specifically operates under an independent contractor agreement with specific terms of the contract. Independent contractors also use their own equipment and tools for work. They set their own rates, labor schedules, and payment.
What do South Carolina small business owners need to know about workers’ compensation?
Even if you pay your workers via 1099, you may still be required to supply them with workers’ compensation insurance coverage. There are various determining factors for whether you must supply coverage in addition to the method of payment to workers.
You can obtain workers’ compensation insurance through a commercial insurance carrier that’s licensed to write coverage in the state of South Carolina.
You can also obtain insurance via the state of South Carolina’s assigned risk program. This program is administered by the National Council on Compensation Insurance (NCCI).
Workers’ comp insurance not only covers any necessary medical treatment for employees affected by an on-the-job injury, but it can also help cover any expenses incurred for travel to receive medical treatment.
Your insurance representative will reimburse you for mileage to a medical facility that’s more than five miles away from the employee’s home.
To keep track of these expenses, inform your employee to save receipts for bills such as lodging, meals, and public transportation. They’ll need to submit these receipts to your representative to receive reimbursement.
Your employees will have options if they can’t provide their own transportation to medical appointments if they contact your representative. They’ll also need to attend scheduled medical appointments and take the appropriate steps to improve their health to receive weekly wage loss checks.
11 essential facts about workers’ comp insurance in South Carolina
- If you previously maintained workers’ compensation insurance but now you no longer need it, you must file a Form 38 with the South Carolina Workers’ Compensation Commission.
- You can find more information on South Carolina’s workers’ compensation coverage information here.
- The South Carolina’s Workers’ Compensation Commission Coverage Division helps maintain, monitor, and enforce the various requirements for employers regarding an employer’s responsibility to maintain workers’ compensation insurance coverage.
- If you own a small business in South Carolina, at some point you may have to work with the Compliance Division of the South Carolina Workers’ Compensation Commission. This division is responsible for helping to determine if the named party is insured with workers’ comp and/or subject to the South Carolina Workers’ Compensation Act. The division must determine this in the case that a claim is filed for which there’s no apparent workers’ compensation insurance coverage. Employers who fail to maintain coverage will be prosecuted through this division.
- Employers in the state of South Carolina that are subject to the South Carolina Workers’ Compensation Act are required to display an Employer’s Notice of Being Subject to the Act (R67-301 A). This poster must be posted publicly in your place of business.
- In addition to the Employer’s Notice of Being Subject to the Act, there may be other posters you’re required by state law to display in your business. You can find these posters here.
- For more information on employers that may be challenging to find in the South Carolina Workers’ Compensation Insurance Coverage Verification System, go here.
- If you don’t comply with the South Carolina Workers Compensation Act’s requirements, you may be subject to fines and penalties. You must file the appropriate forms and complete proper documentation with the South Carolina Workers’ Compensation Commission to ensure and verify that you’ve properly addressed your rights, as well as the rights of the injured employee.
- The South Carolina Workers’ Compensation Commission’s Coverage Division will keep records of your insurance coverage to confirm the responsible insuring entity in the case of a work-related injury or illness.
- As an employer, your workers’ comp insurance carrier can authorize a medical provider to treat your injured employee. More information on medical fees and billing for an injured employee can be found here. For the 2022 South Carolina Workers’ Compensation Medical Fee Schedule, go here.
- The South Carolina Unannotated Code of Laws for “Title 42 – Workers’ Compensation” will provide more information on what happens in the case of failure to pay claims, confidentiality, and other legal matters related to workers’ compensation insurance coverage in the state.
Curious about South Carolina workers’ comp rates?
Remember, every situation is different. South Carolina workers’ compensation laws are subject to change, so be sure to do your research and speak with a trusted advisor.
Please note that this content is intended for educational purposes only. As laws change regularly, refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about the basics of workers’ comp or check your current rate in 3 minutes.