Workers’ Compensation Insurance: Definition, Coverage, Costs, and State Requirements

Employee doing manual work in garage
Key Takeaways
  • Workers’ compensation is state-mandated insurance that covers work-related injuries and illnesses with medical, wage-replacement, and rehabilitation benefits.
  • Most states require coverage as soon as you hire your first employee; some have thresholds (e.g., 2–5 employees) or industry exceptions. A few states (e.g., Texas, South Dakota) allow employers to opt out.
  • Premiums are driven by payroll, job risk, claims history, and state rules. Pay-as-you-go options can align payments with each payroll.
  • Four monopolistic states (North Dakota, Ohio, Washington, Wyoming) require purchasing coverage from the state fund.
  • Workers’ comp is generally the exclusive remedy for workplace injuries, limiting lawsuits when benefits are accepted.
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How to Fill Out Form 941 (2026): Step-by-step Instructions to Fill Out Form 941

Employer filling out Form 941.

If you have employees, you likely need to fill out and file Form 941 each quarter. Form 941 is jam-packed with different sections and calculations, which leaves room for errors. Avoid major Form 941 mistakes and learn how to fill out Form 941 line by line here.

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How to Get More Clients for Your Accounting Firm: 8 Tips

Accountant meeting with a potential client.

Want to win over some new clients? If so, you have to be willing to put in a little elbow grease. Sure, growing your client base doesn’t happen overnight. But with a little research, the right marketing strategies, and a few tips (eight to be exact), you can expand your client base in no time. Here’s how to get more clients and grow your firm to its fullest potential.

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With This Guide, You’ll Be a Reference Check Pro in No Time

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As an employer, you’re responsible for going through the hiring process and finding top-notch employees who fit in with your work culture. But to do that, you have to do a little homework.

Many businesses use a reference check to dive deeper into an applicant’s employment past and find out if they’re fit for the job. But if you want to become a reference check pro, you need to learn how to do a reference check and what to ask references.

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How Long Does Payroll Take to Process?

Woman typing on a laptop.

When it comes to running payroll, you know there’s a whole process that goes into it. You need to determine your employees’ hours worked, do some calculations, and give out wages. And, you must give yourself ample time to ensure employees receive said wages on payday. So, how long does payroll take to process?

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How to Start an E-commerce Business from Scratch

E-commerce business owner working on a laptop.

Thanks to the evolution of technology, you can run your business all behind a computer screen nowadays. If you like the idea of running a business online, then an e-commerce business might be a good fit for you. Read on to learn how to start an e-commerce business and tips for successfully building an online business.

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