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SPAR Merchandising - steals 2.9% for "Workers Compensation Insurance"

April 19, 2013 05:45PM
What do you think of the requirement that every merchandiser working for SPAR contribute 2.9% of every paycheck for "Workers Compensation Insurance"? Of course, if you can prove you already have it, you don't have to pay SPAR for it.

I was under the impression that someone with no employees (such as a merchandiser) doesn't need Worker's Compensation insurance. Perhaps they are stealing the 2.9% to pay their own worker's comp, but why would they need it since they have only independent contractors, not employees?

Or maybe it's just a scam to pay for their PayPal fees?

I would like to hear a cogent explanation as to why these deductions are reasonable (given that no other company seems to do this).

Thanks...
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April 19, 2013 07:24PM
Some excellent potential explanations and suggestions were offered on this topic in the Merchandising Companies and Discussions portion of this forum through the thread, "Spar deducting for insurance?"

This thread will probably get moved to that section of the forum as well.
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April 19, 2013 09:52PM
This would be a mater for the labor department in your state. It is worth persuing. It seems illegal since we are independent contractors.
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April 20, 2013 12:42AM
If they choose to require independent contractors to carry insurance, it is most likely within their rights. If the 2.9% is for liability insurance, that could not be considered stealing, stealing would be taking money and providing nothing in return. You can also choose to buy the insurance from whoever you want.

Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
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April 20, 2013 05:07PM
I am a Worker's Comp Auditor. Independent Contractor can mean various things to various companies. IE, state, federal government and others. For insurance purposes, we would be considered an employee depending on how many times we worked for the mystery shopping company. They are in the business of mystery shopping and for all purposes so are we.
To the insurance company we could be considered employees. For insurance purposes, an independent contractor does something different than the company hiring them. They perform the service once or twice. They have their own FEIN etc etc.

It can be a length topic to say the least. As an auditor, I am in agreement with their practice.
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June 14, 2013 10:19PM
davedecot Wrote:
-------------------------------------------------------
> What do you think of the requirement that every
> merchandiser working for SPAR contribute 2.9% of
> every paycheck for "Workers Compensation
> Insurance"? Of course, if you can prove you
> already have it, you don't have to pay SPAR for
> it.
>
> I was under the impression that someone with no
> employees (such as a merchandiser) doesn't need
> Worker's Compensation insurance. Perhaps they are
> stealing the 2.9% to pay their own worker's comp,
> but why would they need it since they have only
> independent contractors, not employees?
>
> Or maybe it's just a scam to pay for their PayPal
> fees?
>
> I would like to hear a cogent explanation as to
> why these deductions are reasonable (given that no
> other company seems to do this).
>
> Thanks...
Reply
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