On March 1, 2016, the Texas Department of Insurance announced a grace period for employers not electing to purchase Workers Compensation Insurance, and those who have not filed as Non Subscriber with the State. All non subscribers are required to file the DWC Form 005 on an annual basis.
Historically, few employers have filed the required form since there has been little enforcement of the rule. TDI will no longer ignore this issue and begin fining employers up to $500 per day. The filing must be done annually, and the current grace period ends May 1, 2016. Employers with no current employees are required to file the form within 30 days of hiring its first employee. This applied to cash, 1099 employees as well unless the 1099 workers is a true independent contractor. The form can be found at http://www.tdi.texas.gov/forms/dwc/dwc005nocov.pdf
By purchasing Workers Compensation insurance you can avoid the necessity to file. Workers Compensation insurance is not required to be purchased in the State of Texas, but you ARE required to file as a Non Subscriber by rule. For more information, contact us or the Texas Department of Insurance