Pennsylvania Workers' Compensation Insurance for Small Business | Insureon (2024)

Pennsylvania has taken steps to reduce employer workers’ compensation insurance costs, while encouraging businesses to provide a safe work environment for employees.

Who needs workers’ compensation in Pennsylvania?

All business owners with employees in Pennsylvania are required to carry workers’ compensation insurance. Under the Pennsylvania Workers' Compensation Act, employees who are injured or acquire an illness on the job receive a percentage of lost wages and reimbursem*nt of medical expenses.

Workers' comp also benefits employers, who gain protection against employee lawsuits over injuries. An employer that maintains a workplace safety committee that is certified by the state is eligible to receive a 5% discount on a workers’ compensation policy premium.

Who is exempt from workers' compensation coverage requirements?

The only circ*mstance in which Pennsylvania employers are not required to carry workers’ compensation insurance is if all employees fall into a category for someone who is exempt, such as railroad workers, longshoremen, federal employees, and domestic workers.

Exemption applications and other documentation must be filed with the Department of Labor and Industry's Bureau of Workers' Compensation; it regulates the Pennsylvania workers’ compensation system.

Check with a licensed insurance agent to ensure that you’re following the laws correctly for your situation.

Is workers’ comp mandatory in Pennsylvania for part-time employees?

Pennsylvania law states that any employee who is injured on the job is eligible for workers’ compensation benefits, regardless of whether that person is performing full-time, part-time, or seasonal work.

Do you need workers’ comp in Pennsylvania if you are self-employed?

If you’re self-employed, also called a sole proprietor, you don’t need workers’ compensation. Though Pennsylvania doesn’t mandate coverage, it is available if you choose.

Self-employed workers can still receive lost-wage assistance and other benefits through a workers’ comp policy. It’s also possible that a company looking to hire you as an independent contractor might hesitate if you don’t carry your own coverage.

How much does workers' compensation insurance cost in Pennsylvania?

Pennsylvania Workers' Compensation Insurance for Small Business | Insureon (1)

The average cost of workers’ compensation in Pennsylvania is $58 per month.

Your workers' comp premium is calculated based on a few factors, including:

  • Payroll
  • Location
  • Number of employees
  • Industry and risk factors
  • Coverage limits
  • Claims history

How can Pennsylvania business owners save money on workers' comp?

To save money on workers' comp insurance, it's important to make sure you classify your employees correctly. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.

In some cases, small business owners can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.

Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.

How does workers' comp work in Pennsylvania?

Workers' compensation covers the cost of medical care for workplace injuries and occupational diseases. That includes everything from carpal tunnel syndrome to back injuries and black lung disease. It also provides partial wage replacement while the employee is unable to work.

Workers' compensation benefits in Pennsylvania include:

  • Medical benefits, including hospitalization, prescriptions, and orthopedic appliances
  • Wage loss benefits (usually two-thirds of the worker's average weekly wage)
  • Partial disability benefits, if the employee earns lower wages after the injury
  • Vocational rehabilitation
  • Death benefits, if a work-related injury or illness results in death

For details, visit the Pennsylvania Department of Labor and Industry's page on claims and indemnity.

How does workers' compensation insurance protect employers?

Most workers' compensation policies include employer's liability insurance, which can help cover legal expenses if an employee blames their employer for an injury. Additionally, the exclusive remedy provision in most workers' comp policies prohibits an employee from suing their employer once they accept workers' comp benefits.

How is workers' compensation purchased in Pennsylvania?

There are four ways to buy workers’ compensation insurance in Pennsylvania:

  • Purchase workers’ compensation insurance through an agent or broker. Insureon provides an online option to compare quotes from top insurers with one application.
  • Purchase directly from a private-sector insurance carrier.
  • Apply for self-insurance. This is an option for large companies that have operated for three or more years.
  • Obtain insurance from the State Workers’ Insurance Fund.

Costs for workers’ compensation insurance vary because they depend on the level of risk involved for specific employees. Different jobs have different associated hazards, which are typically classified through class codes.

What are the penalties for not having workers’ compensation insurance?

Pennsylvania employers, from Pittsburgh to Erie, can face civil and criminal penalties for failure to have adequate workers’ comp coverage.

If an employee is injured on the job and the employer is uninsured, the employee’s benefits will be paid from the Uninsured Employers Guaranty Fund, and the employer will be responsible for reimbursing the fund. This would include costs, interest, penalties, and other fees.

In addition, the uninsured employer opens itself up to litigation for any injuries sustained if the employee decides to sue for damages. Often, the amount of damages awarded is more than what the employer’s cost would have been for workers’ compensation insurance.

If it is found that an employer failed to maintain workers’ compensation coverage, each individual responsible for that lapse could also be criminally charged. That person could be found guilty of a misdemeanor, which would carry a fine up to $2,500 and up to a year in jail. If the failure to comply is intentional, it could be a felony charge with a fine of up to $15,000 and up to seven years in prison.

Criminal counts, fines, penalties, and jail time can increase for each day the employer failed to maintain workers’ compensation insurance.

Get free workers' compensation quotes for your Pennsylvania business

Pennsylvania workers’ compensation law for death benefits

The dependents of an employee who dies on the job can obtain workers’ compensation death benefits. Compensation payments begin on the date of the employee's death.

Pennsylvania qualifies the following individuals as dependents:

  • Spouses
  • Children under 18 or full-time students up to age 23
  • Children of any age who are physically or mentally incapacitated
  • Parents who depend on the deceased person for financial support
  • Siblings under the age of 18 or who are full-time students until the age of 23 who depend on the deceased worker for financial support

Workers’ compensation death benefits also include a payment of $3,000 for burial expenses.

Workers’ compensation settlements in Pennsylvania

Settlements provide an opportunity for all stakeholders to close a Pennsylvania workers' compensation claim. Typically the injured employee gives up rights to future claims in exchange for a sum of money.

The payment is often awarded as a lump sum. Some injured workers will obtain compensation benefits in the form of a structured settlement, which means that payments are made in installments over a period of time.

It’s possible for an injured worker to obtain a commutation, which is when a lump sum is awarded in lieu of weekly benefits but the worker does not give up rights to future benefits like medical treatment.

Workers’ compensation statute of limitations in Pennsylvania

The statute of limitations to file a claim petition for an injury sustained on the job in Pennsylvania is three years from the date of injury.

However, the claimant is required to seek treatment with an approved health care provider within 90 days after the injury. There is also a 120-day time limit for notifying employers about the injury.

Get free quotes and buy online with Insureon

If you are ready to explore workers’ comp options for your Pennsylvania business, start a free online application today to compare quotes from top-rated insurance companies.

Verified workers' compensation insurance reviews

Hear from business owners like you who purchased workers' comp.

Updated:

February 5, 2024

Find workers' comp insurance quotes

Save money by comparing insurance quotes from multiple carriers.

EXPLORE ON INSUREON

What is a workers' compensation ghost policy?What to do when your employee is injured at workOther recommended insurance policies for small businesses in PennsylvaniaWhat is a minimum premium workers’ compensation policy?View required and recommended insurance policies for Philadelphia businessesBest workers' compensation insurance for small businesses

SHARE THIS ARTICLE

Pennsylvania Workers' Compensation Insurance for Small Business | Insureon (2024)

FAQs

Are PA employers required to have workers' compensation insurance? ›

Workers' compensation coverage is mandatory for most employers under Pennsylvania law. Employers who do not have workers' compensation coverage may be subject to lawsuits by employees and to criminal prosecution by the commonwealth. Some employers are exempted from workers' compensation coverage.

How much does workers' comp insurance cost in PA? ›

The average cost of workers' compensation in Pennsylvania is $58 per month. Your workers' comp premium is calculated based on a few factors, including: Payroll.

Does a sole proprietor need workers compensation in Pennsylvania? ›

If you are self-employed, or a “sole proprietor,” the commonwealth does not require any company to provide you with insurance, nor does it require you to get it for yourself. A self-employed person can still get workers' compensation insurance, but it may or may not be worth pursuing.

What is the minimum payroll for workers compensation in PA? ›

Workers' Comp Exemptions in Pennsylvania

Sole-Proprietors and Partners who include themselves on workers' compensation coverage must use a minimum payroll amount of $66,196 and a maximum amount of $166,400 for rating the cost of workers' compensation for owners.

Who is exempt from workers compensation in Pennsylvania? ›

Sole proprietors. Employees not working within the regular course of the employer's business. Agricultural workers hired to do less than 30 days of work and who earn less than $1,200/year from one employer. Employees who request an exemption based on religious beliefs or executive status in certain corporations.

What is the penalty for not having workers comp insurance in PA? ›

Criminal Consequences

Failing to carry workers' comp insurance is a criminal offense; a non-compliant employer in Pennsylvania can face fines up to $2500 and/or one year in prison for each day that the employer does not have coverage for employees.

Do I need workers' comp insurance for myself in PA? ›

Do I Need Workers' Comp For Myself? In Pennsylvania, any self-employed workers or sole proprietors are legally exempt from the requirement of purchasing workers' compensation. Though, depending on the industry you're working in and the nature of your job, it could be advantageous to pursue.

How to calculate workers' comp in PA? ›

Generally, Pennsylvania workers' compensation rates provide two-thirds of your average weekly wage up to a maximum amount. Pursuant to the Pennsylvania workers' compensation law, the statewide average weekly wage for injuries occurring on and after January 1, 2022, shall be $1,205.00 per week.

How do I get workers comp in Pennsylvania? ›

The steps to file a workers' compensation claim in Pennsylvania
  1. Step 1: Report the injury to your employer. ...
  2. Step 2: Get medical attention. ...
  3. Step 3: A claim is filed with the Pennsylvania Bureau of Workers' Compensation. ...
  4. Step 4: Appealing a denied or disputed claim.

Do independent contractors need workers' comp in PA? ›

Independent contractors are not eligible for workers' compensation under the Pennsylvania Workers' Compensation Act. However, just because your employer may characterize you as an independent contractor, that does not mean you are an independent contractor instead of an employee under workers' compensation law.

Can a sole proprietor have employees on payroll? ›

Sole proprietors can and do employ people. Many start with family members, but hiring people, whether the person is a relative or not, adds another layer of complexity to business management. Sole proprietors will need to pay their employees, file and remit payroll taxes, and comply with employment regulations.

Is workers comp taxable income in PA? ›

Workers' compensation benefits are generally tax-free under Pennsylvania law. They are not taxed like regular income.

What is the 90 day rule for workers' comp in PA? ›

Our state's 90-day rule, for instance, deals with seeking medical care after a work injury. In Pennsylvania, the 90-day rule states that injured workers must initially see "panel physicians”—a list of pre-approved doctors posted by the employer—within 90 days of their workplace injury to receive compensation.

What is the workers comp rate in PA 2024? ›

2024 Pennsylvania Workers' Compensation Rate Schedules

1, 2023, the percentage increase in the statewide average weekly wage is 4.0 percent. The maximum weekly compensation rate for the calendar year 2024 is $1325.00.

How long does workers' comp last in PA? ›

How Long You Can Collect Workers' Compensation With a Temporary Total Disability. This classification assumes that your condition is temporary and that you will successfully resume your job duties. Under this classification, you can collect benefits for lost wages for a maximum of 90 days.

Do employers in PA have to provide health insurance? ›

Health insurance coverage in Pennsylvania

The state and federal government don't require business owners in Pennsylvania to offer their workers health insurance benefits if they have fewer than 50 employees.

Do you need workers' comp for 1099 employees in PA? ›

In Pennsylvania, any self-employed workers or sole proprietors are legally exempt from the requirement of purchasing workers' compensation. Though, depending on the industry you're working in and the nature of your job, it could be advantageous to pursue.

Are there any circ*mstances in which an employer does not have to provide workers compensation insurance quizlet? ›

Workers' Compensation statutes require employers to provide benefits to all employees unless an employee is exempt. Some states exempt workers of employers with fewer than 1 to 3 employees. Some states exempt workers based on job duties.

How long does an employer have to file a workers comp claim in PA? ›

Within 21 days from the date the employee provides notification of an injury, the employer/carrier accepts liability for the injury and issues a Notice of Workers' Compensation Payable, a Notice of Temporary Compensation Payable or an Agreement for Compensation to the employee.

Top Articles
How To Become A Certified Financial Planner | The Complete Walkthrough
How to Grocery Shop on an Extreme Budget
Craigslist Pets Longview Tx
Valley Fair Tickets Costco
Immobiliare di Felice| Appartamento | Appartamento in vendita Porto San
South Park Season 26 Kisscartoon
Tj Nails Victoria Tx
Grange Display Calculator
Bucks County Job Requisitions
50 Meowbahh Fun Facts: Net Worth, Age, Birthday, Face Reveal, YouTube Earnings, Girlfriend, Doxxed, Discord, Fanart, TikTok, Instagram, Etc
Deshret's Spirit
Call Follower Osrs
4156303136
Simple Steamed Purple Sweet Potatoes
Unit 1 Lesson 5 Practice Problems Answer Key
My.doculivery.com/Crowncork
Rosemary Beach, Panama City Beach, FL Real Estate & Homes for Sale | realtor.com®
Healing Guide Dragonflight 10.2.7 Wow Warring Dueling Guide
Char-Em Isd
Sam's Club La Habra Gas Prices
Beebe Portal Athena
Puretalkusa.com/Amac
Long Island Jobs Craigslist
Persona 5 Royal Fusion Calculator (Fusion list with guide)
Icivics The Electoral Process Answer Key
6 Most Trusted Pheromone perfumes of 2024 for Winning Over Women
Wiseloan Login
What Sells at Flea Markets: 20 Profitable Items
Scott Surratt Salary
O'reilly's In Monroe Georgia
Keshi with Mac Ayres and Starfall (Rescheduled from 11/1/2024) (POSTPONED) Tickets Thu, Nov 1, 2029 8:00 pm at Pechanga Arena - San Diego in San Diego, CA
Tripcheck Oregon Map
Mia Malkova Bio, Net Worth, Age & More - Magzica
Kids and Adult Dinosaur Costume
Trebuchet Gizmo Answer Key
New York Rangers Hfboards
Rogers Centre is getting a $300M reno. Here's what the Blue Jays ballpark will look like | CBC News
Tds Wifi Outage
Austin Automotive Buda
Hannibal Mo Craigslist Pets
Jason Brewer Leaving Fox 25
Below Five Store Near Me
Uc Davis Tech Management Minor
Why Are The French So Google Feud Answers
Collision Masters Fairbanks
Petfinder Quiz
Crigslist Tucson
Aznchikz
tampa bay farm & garden - by owner "horses" - craigslist
Zits Comic Arcamax
Secondary Math 2 Module 3 Answers
Latest Posts
Article information

Author: Foster Heidenreich CPA

Last Updated:

Views: 6516

Rating: 4.6 / 5 (76 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Foster Heidenreich CPA

Birthday: 1995-01-14

Address: 55021 Usha Garden, North Larisa, DE 19209

Phone: +6812240846623

Job: Corporate Healthcare Strategist

Hobby: Singing, Listening to music, Rafting, LARPing, Gardening, Quilting, Rappelling

Introduction: My name is Foster Heidenreich CPA, I am a delightful, quaint, glorious, quaint, faithful, enchanting, fine person who loves writing and wants to share my knowledge and understanding with you.