Workers’ Compensation Basics for Florida Employers

Workers’ compensation6 min read

Requirements differ by industry

Florida’s workers’ compensation requirements are not uniform. The employee thresholds that trigger a requirement differ between construction and non-construction work, and construction thresholds are substantially lower. Confirm which rule applies to your operation rather than assuming the general one does.

Premium is payroll times rate, by class code

Premium is calculated on payroll within each classification code, multiplied by the rate for that code, then modified. This is why accurate class codes and accurate payroll matter more than almost anything else on the policy.

Experience modification

Once an employer is large enough to qualify, an experience modifier compares its loss history to others in the same classification and adjusts premium up or down. Claims influence cost for years, not just the year they occur.

Uninsured subcontractors become your payroll

If you use subcontractors who cannot produce their own coverage, their payroll can be added to yours at audit. Collecting certificates from every sub before work starts is the single most effective way to avoid a large audit bill.

Audits reconcile estimates to reality

The policy starts on estimated payroll and is audited at the end of the term. If the estimate was low, the difference is owed. Reporting realistic payroll up front turns the audit into a formality.

Classification disputes are worth pursuing

Employers are sometimes assigned a code that does not reflect the work performed. Because the rate difference between codes can be large, a correction is often worth real money.