We have a client from California that was just audited by the State Fund Workers Comp Insurance. We thought you might be interested in the results of her audit.
• Because her cleaning person does not have a city establishment license, she owes workers comp insurance on the cleaning person. In other words, unless the cleaning person is a valid business she is considered an employee.
• Secondly, she had been paying workman’s compensation on tips which according to the state of California, were not wages subject to Workman’s Comp.
WARNING! All states and cities are different, so make sure you check on this within your boundaries.
