Kansas Employers: Life Insurance Requirements And Employee Rights

In Kansas, employers are required by law to carry workers' compensation insurance if they have a certain number of employees. This insurance helps cover lost wages and medical expenses for employees who are injured or become ill on the job. It also provides death benefits for families of employees who lose their lives while working. While workers' compensation is mandatory for most employers in Kansas, there are some exceptions, such as businesses with a gross payroll of $20,000 or less per year and certain types of agricultural work. Additionally, Kansas employers may offer their employees optional life insurance, which provides extra coverage beyond basic life insurance and death benefits.

Kansas workers' compensation insurance

The Kansas workers' comp statute is broad and requires almost all public sector and private employers to provide workers' compensation insurance for both full-time and part-time employees. However, there are some exemptions. Employers with a payroll of $20,000 or less are exempt, as are certain agricultural workers, realtors working as independent contractors, and firefighters belonging to a firefighters' relief association that has waived coverage under the state's workers' compensation law. Sole proprietors, partners, and LLC members are also automatically excluded from coverage but may elect to be covered. On the other hand, corporate officers are automatically included in coverage but may choose to be excluded.

The cost of workers' compensation insurance in Kansas varies depending on factors such as the employees' type of work and the company's industry and risk factors. The average cost is $52 per month. To save money, employers should correctly classify their employees, as employees with desk jobs or other low-risk jobs are cheaper to insure. Additionally, a documented safety program can help lower costs by reducing accidents and keeping premiums low.

Kansas employers who fail to provide workers' compensation insurance for their employees or pay for expenses related to work injuries and illnesses may face serious consequences. They may be subject to a civil penalty of twice the annual workers' comp premium or $25,000, whichever is higher. The state of Kansas also has the authority to shut down non-compliant businesses until they can provide proof of proper insurance coverage.

Basic group life insurance

The first $50,000 of group term life insurance coverage is tax-free for the employee. However, the cost of any coverage over $50,000 that is paid for by an employer must be recognised as a taxable benefit and reported on the employee's W-2 form as income.

While basic group life insurance is a convenient and low-cost option, it may not be sufficient for an individual's needs. The coverage is tied to the employee's job, so if they leave their job, they may not be able to take the policy with them. Additionally, the coverage amounts tend to be low, and the premiums are not fixed, increasing either annually or every five years.

Optional group life insurance

Kansas law requires almost every employer to carry workers' compensation insurance, which covers the cost of medical treatment for injured workers. This includes funeral costs and death benefits for the employee's family if they lose their life on the job. However, this is different from life insurance, and it is unclear whether Kansas employers are required to carry life insurance on their employees.

• Eligibility: To be eligible for Optional Group Life Insurance, individuals must be under a certain age (typically 71 or below), actively employed, and enrolled in the Basic Group Life Insurance coverage. Some plans may also require individuals to not be receiving a pension. Spouses may also be eligible for Optional Spousal Group Life Insurance if they are under a certain age (usually 65) and enrolled in the Basic Group Life Insurance coverage.
• Coverage Options: This type of insurance typically offers a range of coverage options, such as 1x, 2x, 3x, etc., the individual's creditable compensation. Spouse coverage is usually offered at a fraction of the individual's coverage, and dependent children can also be covered for a specified amount.
• Benefits: Optional Group Life Insurance provides benefits in the event of natural or accidental death or dismemberment. It can help cover funeral costs, provide financial support for surviving family members, and assist with expenses related to injuries or illnesses resulting in dismemberment.
• Enrollment and Changes: Enrollment in Optional Group Life Insurance is often done through an online application process, and individuals may be required to complete a health questionnaire. Once enrolled, changes in coverage levels can typically be made online, and coverage can be increased, decreased, or cancelled.
• Costs and Payment: The cost of Optional Group Life Insurance is typically paid through payroll deduction, with premiums deducted directly from the individual's paycheck. The amount of the premium will depend on the level of coverage selected.
• Continuity: In some cases, individuals may be able to continue their Optional Group Life Insurance coverage after leaving their employment. However, this may be subject to certain conditions, such as continuous coverage for a specified period before leaving the job. The level of coverage may also be reduced upon reaching retirement age.

Workers' comp exemptions

Kansas law requires almost every business with employees to provide workers' compensation insurance. However, there are some exemptions to this rule.

Firstly, employers with a gross payroll of $20,000 or less per year are exempt from providing workers' compensation insurance. This includes all payroll, both inside and outside of Kansas. However, wages paid to sole proprietors, family members, owners, and partners are not counted towards this total.

Secondly, certain types of employers are exempt from providing workers' compensation insurance. These include:

• Realtors who are independent contractors
• Firefighters working for relief associations that have been waived under Kansas workers' comp law
• Sole proprietorships or partners
• Certain vehicle operators covered by occupational accident insurance
• Certain agricultural employees

It is important to note that misclassifying employees can be considered workers' compensation insurance fraud. Therefore, employers should carefully review the class codes and conduct a year-end review of their workers' compensation insurance plan.

Penalties for non-compliance

Kansas employers who fail to provide workers' compensation insurance for their employees can face serious consequences, including mandatory business closures and hefty fines. Specifically, non-compliant businesses may be subject to a civil penalty of twice their annual workers' compensation insurance premium or $25,000, whichever amount is higher. Additionally, the State of Kansas has the authority to shut down a business if it fails to provide the required workers' compensation insurance coverage.

The Kansas Department of Labor's Compliance Unit plays a crucial role in enforcing these penalties. They monitor and assist employers in fulfilling their obligations under the Workers' Compensation Act, which includes securing workers' compensation benefits for employees and reporting work accidents. If an employer fails to secure these benefits or report accidents, they may face monetary penalties or even the closure of their business.

It is important to note that the failure to secure workers' compensation insurance is not the only infraction that can lead to penalties. Employers who misclassify their employees or fail to timely file accident reports can also face significant consequences. For instance, misclassifying employees as independent contractors can be considered workers' compensation insurance fraud, and employers engaging in such practices may be subject to fines and other legal repercussions. Similarly, failing to report employee accidents within 28 days can result in a $250 civil penalty for each violation.

In summary, Kansas has stringent rules regarding workers' compensation insurance, and non-compliance can result in significant financial penalties and even the closure of a business. Employers must prioritize adhering to these regulations to avoid legal repercussions and ensure their employees are protected in the event of work-related injuries or illnesses.

Frequently asked questions