If you own a business in Missouri, you must know and understand your employer liability.
Employment categories, worker reporting, liability types, wages and taxes are just a few of the issues rife with rules and regulations that, if avoided, can create serious consequences.
For example, did you know that any Missouri employer knowingly failing to insure its workers’ compensation liabilities is guilty of a class A misdemeanor, with penalties of up to three times the annual premium? Any subsequent violation is a class D felony. The fraud and noncompliance administrative unit of the Division of Workers Compensation in Missouri investigates incidences of employer fraud and failure to comply with the statute’s provisions. (Chapter 287, Section 128, of the Missouri Revised Statutes)
Employer liability laws like this and many others can have deep and broad implications for the future success of your business. Because you need to care about your liability as an employer in Missouri, it makes sense to align your organization with local workers compensation attorneys who can guide you through the process.
Missouri Employment Categories
In Missouri, employment types are divided into three categories:
- General Business (all other workers)
The State of Missouri must be notified within 30 days of your eligibility to pay taxes. Various rules apply, based upon factors such as your type of business, the types of workers you employ, and the duties of those workers. For example, all governmental entities are liable regardless of wages paid or number of weeks worked. However, 501(c)(3) or nonprofit organizations are liable when 4 or more workers are paid for some portion of work over twenty different weeks. Laws regarding wages and work duties for agricultural workers, domestic workers and general business workers vary.
The categories are as follows:
- Governmental Entities, including federally recognized Indian Tribes
- Nonprofit Organizations described in Section 501(c)(3) of the Internal Revenue Code
- Employers of Domestic Workers
- Employers of Agricultural Workers
- General Business Employers (not included in other categories)
The only business entity exempt from unemployment insurance coverage is Churches & Religious Organizations, who need not report on workers for unemployment tax purposes. Additionally, employers whose staff size or wages are too low to meet the criteria may elect to cover its workers for unemployment insurance subject to the Missouri Employment Security Law.
Getting Help for Employer Liability
Do not ignore these vital obligations as a Missouri employer. Your workers compensation attorney at the St. Louis law firm of Quinn Estate & Elder Law is best equipped to help you understand and comply with your liabilities as a Missouri employer. Give them a call today.