IWIF may issue a separate policy for coverage in other states. If your policy has other states coverage, the Premium Audit Report will list “Other States’ Coverage” in the Employee Payroll Detail section. Indicate the total payroll amount for the other states employees in this section.

Some policies have coverage in more than one state outside of Maryland. If this is the case, list each state and the payroll amount for that state, in the “Other Comments” section of the Premium Audit Report.

List the payroll amounts in each classification if your out of state policy has more than one classification.

Send in your Maryland Unemployment Reports, the Unemployment Reports for the other states listed on the policy, and your 941 forms.

If your company performs construction work please call the IWIF audit department to discuss special reporting rules that apply to construction accounts with out of state policies.

Wrap-Up Agreements

A wrap up agreement is when another company provides the insurance for workers’ compensation for a specific construction job and location.

List the wrap-up payroll amount on the “Other Adjustments” line in the Total Payroll Information section. Do not include the wrap up payroll in the Employee Payroll Detail section.

The following documentation needs to be sent in with the audit report:

· Certified payroll sheets
· A declaration page showing the job location, policy period, and your company as a listed   insured under the wrap up agreement

IWIF Guidelines for Validating Independent Contractor Status - New

IWIF recommends that you, as the hiring contractor, gather and retain the following documents for each individual presented as an independent contractor:

· Certificate of insurance for general liability coverage
· A copy of the independent contractor’s business license
· Written subcontract in place for each job conducted by the individual contract laborer, per   Title 9-508 of the Maryland Workers’ Compensation Statute
· A signed copy of the “Sole Proprietor’s Status as a Covered Employee” form

Even if all four items are provided, the individual in question could still be considered an uninsured subcontractor if he or she performs work that is normally considered a “crew” activity (for example, framing, siding, roofing, drywall, or concrete work).

If you answer “yes” to any of the following questions, the individual contract laborer is most likely an employee:
· Is the person paid hourly (or by the piece, day, or week)?
· Does the person perform work that regular employees of your business perform?
· Is all or a majority of the work that is the general nature of your business performed by   contract labor?
· Do you provide the material for the job(s)?

Note: Important Change to Workers’ Comp Law Legislation passed during the 2009 session amends the Maryland workers’ compensation law whereby an individual is presumed to be an employee and not an independent contractor. Effective October 1, 2009, the burden now rests with the employer to prove independent contractor status.

In all cases, if the individual/contractor (without workers’ compensation coverage) in question hires labor to help perform the work, the individual would be considered an uninsured contractor and the amounts he or she was paid would rightfully be included with payroll/wages on your audit.

IWIF Guidelines for Excluding Hired Outside Truckers - New

If you have hired or plan to hire a trucking company to perform services for your business, IWIF requires the following documentation to exclude them as employees and as part of the payroll included on your workers’ compensation audit.

If the trucker has workers: The trucker must furnish you with proof of workers’ compensation insurance before the service is performed.

Note: A binder number is not proof that a workers’ compensation policy has been obtained. Verification of actual Maryland coverage in place can be confirmed through the Maryland Workers’ Compensation Commission at: http://www.wcc.state.md.us/.

If the trucker does not have workers: You must obtain the following:

· Commercial auto liability certificates of insurance from point of hire through termination.   The certificates must list the vehicles insured as well as driver(s).

· Sole proprietors must sign the “Sole Proprietor’s Status as a Covered Employee” form   and file it with the Maryland Workers’ Compensation Commission before the service is   performed.

· LLC members/officers (Farm Corp., Close Corp., Professional Corp.) must sign the   “Exclusion” form (Form C-16R) and file it with the Maryland Workers’ Compensation   Commission before the service is performed.

If you are a licensed motor carrier that is hiring truckers that do not have any workers: You may enter into an agreement with the truckers in accordance with Title 9-218, whereby:

· There is a written permanent agreement or trip lease in place for each specific trucker;

· The agreement reflects that there is no intent to create an employer-employee   relationship; and

· The agreement indicates that the trucker will be paid rental commission.

In addition, you must provide commercial auto liability certificates of insurance from point of hire through termination for each trucker presented as an owner/operator. The certificates must list the vehicles insured as well as the driver(s).

Exceptions:

· If the hired trucker sublets any portion of his or her work from your company to another   trucker, then the trucker directly hired by your company would be required to carry his or   her own workers’ compensation policy.

· The “Sole Proprietor’s Status as a Covered Employee” form and “Exclusion” form
   (C-16R) for officers and members are used to allow exclusions of specified individuals   in accordance with Maryland law for Maryland-based exposures.

The exclusion allowed under Maryland law may not protect your company from a claim filed outside the State of Maryland. Therefore, if your hired truckers were required to travel outside the State of Maryland, they may be required to carry their own workers’ compensation policies. Please check with your insurance agent/broker for answers to your particular circumstance.

Note: IWIF may also employ additional resources to verify that the hired trucker is an “Independent Contractor.” This may include, but is not limited to:

· SAFER – Federal Motor Carrier Safety Administration Database
· Dun & Bradstreet – U.S. Business Credit Information
· LexisNexis – International Database
· State Fuel Tax Reports – All States

If, upon review of other resources, it appears that the trucker in question has any form of workers, he or she may be included on your audit.

Other Adjustments
Include a detailed explanation and supporting documentation if additions or subtractions are made to payroll amounts.