any NY payroll workers comp experts here?

[schirallicpa]

New client dumped a bunch of stuff on me and even though I said quite clearly "I don't do payroll" she's one of those "oh - I thought you were a CPA" kind of people and I'm not sure I'm too happy to have taken her on.

Regardless, in her bunk was a couple of bills from NYS WC board with charges and penalties.  She's been on a payroll (the only person on her payroll) for a couple of years as her company is treated as an Scorp.  I don't know anything about WC except I pay a dbl and wc policy thru my local agent and it is peanuts.  I told her that and supposedly she went to her insurance agent about it.  In the meantime, not sure what to do about these 16K bills from NYS WC board.  Can they be contested?  Can my POA cover WC?  Should I tell her to get an attorney?  

[Lee B]

I do live payroll and handle Workers Compensation Audits for my clients but I am in Oregon and coverage rules vary from state to state.

Link to the New York Workers Compensation Board:

https://www.wcb.ny.gov/content/main/coverage-requirements-wc/for-profit-business.jsp

These bills could be related to earlier years when she did have other employees?

The bills also could be related to work related injuries to employees when she did not have the WC coverage required by New York law?

If you don't have experience in this area, you may want to tell your client that you don't have the expertise to deal with Workers Compensation.

[schirallicpa]

1 hour ago, Lee B said:

If you don't have experience in this area, you may want to tell your client that you don't have the expertise to deal with Workers Compensation.

Oh - I have.  She's one of those "oh I thought you were a CPA" clients.....

[Medlin Software, Dennis]

I at least some states, but likely in advance and via a proper form/notice, a shareholder/owner can remove themselves from WC coverage. It may even be automatic when the person is the only shareholder.

[Patrick Michael]

 Workers’ compensation coverage IS NOT required for partnerships, LLCs, and LLPs that do not have employees. Members and partners are not considered employees for the purposes of obtaining workers' compensation insurance, but may voluntarily cover themselves under a workers' compensation policy.

I would respond with a copy of a copy of their most recent 1120S showing they are a single member LLC.

https://www.wcb.ny.gov/content/main/coverage-requirements-wc/llc-llp.jsp

 

 

[BulldogTom]

@schirallicpa  I would hire @Patrick Michael to walk me through it.   And add his bill to your invoice to her.   If the client is paying you to know it all, your bill should reflect the cost of learning it all. 

Tom
Longview, TX

[Lee B]

On 8/26/2024 at 9:29 AM, schirallicpa said:

 

 She's been on a payroll (the only person on her payroll) for a couple of years as her company is treated as an Scorp.  

Sounds like she did have employees previously, so the bill may in fact be legitimate?

Time to ask questions. Ask for copies of payroll quarterlies and W 2s?

[michaelmars]

I had a similar situation for my own corp.   took 3 years of back and forth to get it cleared up.  File the forms for a hearing and someone will contact you who has the authority to close the case.  In NY 2 officer/owners can be exempted from WC.