Just curious as to how the state of NY finds out that a small employer does not have a Work Compensation policy. Is the employer required to file a certificate of insurance with the state of NY once they have secured WC insurance coverage?
It is normal for the General Contractor to require the Sub Contractors they hire to provide proof of WC by means of the certificate of insurance which is prepared by the agent and/or insurance company and sent to the requesting party, in this case, the state of NY. If the sub does not secure wc insurance to cover claims of the ee’s of the sub, then the Gen Contractor is obligated to pay the wc claim of the sub (state law) from their wc policy.
Regardless, I imagine the $1500 fine is in addition to paying the back taxes. Or, I would assume that.
Does New York require any "bonds" to open a business? Back in 2001 I opened an office in Missouri and since I wasn't a resident, I had to pay $7,000 upfront to the MO Dept of Revenue as a bond against my failure to pay state taxes.
I was supposed to get that money back after 5 years but it took nearly 10 years for me to get it all back.