How is the Workers' Compensation insurance cost handled in terms of employee wages?

The cost of Workers' Compensation insurance is primarily the responsibility of employers. This insurance is designed to provide benefits to employees who suffer job-related injuries or illnesses, ensuring they receive medical care and compensation for lost wages. While employers may factor the cost of this insurance into their overall business expenses, it is not directly deducted from employee paychecks. Employees do not have the option to contribute to this insurance, nor do they share its cost with the state.

Instead, employers are mandated by law to carry this insurance to protect their workers and manage potential liability arising from workplace accidents. This legal obligation ensures a safer work environment for employees, as it incentivizes employers to prioritize workplace safety. In summary, the correct understanding is that the financial burden of Workers' Compensation insurance rests solely on the employers, reinforcing their responsibility to support their employees in the event of workplace injuries.