--- title: Workers Compensation Insurance description: NOPI's workers compensation policy covers all employees and independent contractors and is billed back to the program. --- [Skip to content](https://faq.thenopi.org/en/knowledge/workers-compensation-insurance#main-content) English Show submenu for translations [![NOPI Logo](https://faq.thenopi.org/hs-fs/hubfs/NOPI%20Logos.png?width=200&height=76&name=NOPI%20Logos.png)](https://faq.thenopi.org/en/knowledge?hsLang=en) - [Program Dashboard](https://www.thenopi.org/program-dashboard) - [Open Office Hours](https://www.thenopi.org/open-office) - [NOPI Website](https://thenopi.org/) Open main navigation Close main navigation - [Program Dashboard](https://www.thenopi.org/program-dashboard) - [Open Office Hours](https://www.thenopi.org/open-office) - [NOPI Website](https://thenopi.org/) - English Show submenu for translations - [Contact Support](mailto:support@thenopi.org) [Contact Support](mailto:support@thenopi.org) Hi. How can we help? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://faq.thenopi.org/en/knowledge?hsLang=en) 2. [HR](https://faq.thenopi.org/en/knowledge/hr?hsLang=en) 3. [Employees](https://faq.thenopi.org/en/knowledge/hr?hsLang=en#employees) # Workers Compensation Insurance ## Managing W2 premiums, 1099 audit requirements, and avoiding year-end backfill charges. W2 employees paid through Gusto are subject to workers' compensation charges per pay period. Our current payroll "pay-as-you-go" system, however, does not process charges for 1099 independent contractors. Here are critical audit rules that programs must follow to avoid unexpected costs. **🔍 Find a Provider + Claim Kits** Visit the Talispoint Direct Link at [https://www-sf.talispoint.com/amtrust/external](https://www-sf.talispoint.com/amtrust/external/) to find a provider for a work-related injury and view [State Rules/Claims Kits.](https://goperspecta.com/VPD/amtrust/public/ProviderSearch/Main#) #### ⚠️ Important: Audit Risks for Independent Contractors (1099s) Our insurance provider, Next Insurance, conducts an annual audit to ensure all workers (including independent contractors) are covered.   **If an independent contractor does not provide a Certificate of Insurance (COI) proving they carry their own Workers' Comp coverage, our insurance company may "backfill" the charge.** This means your program will be billed for their coverage at the end of the audit. - **Variable Rates:** The cost of this backfill is not fixed; it varies significantly by **state** where the contractor works and the **total amount** they are paid by your fiscally sponsored program. - **How to Avoid Charges:** To waive these costs, you must submit the contractor's COI to [support@thenopi.org](mailto:support@thenopi.org) before the end of the coverage period on **5/2** of each year. ### Budgeting for Workers Comp To accurately budget for employees or contractors, please email the following details to [support@thenopi.org](mailto:support@thenopi.org): 1. **Work Location:** The state where the work is performed. 2. **Job Classification:** The type of work (e.g., clerical/office vs. manual labor). 3. **Compensation:** Anticipated annual salary (W2) or expected total payments (1099). ### Calculating Your Rates Workers' Comp rates are calculated over a 12-month period from **5/3 to 5/2**. This cycle differs from our standard fiscal year (1/1 – 12/31). Use the calculator below to estimate the cost to your fiscally sponsored program when a contractor is unable to provide a COI. Select State (Rates valid through 5/3/27): -- Choose a State -- Arkansas (AR) — $0.06 California (CA) — $0.62 Colorado (CO) — $0.084 Connecticut (CT) — $0.11 District of Columbia (DC) — $0.048 Kentucky (KY) — $0.092 Massachusetts (MA) — $0.04 Maine (ME) — $0.136 Michigan (MI) — $0.059 New Jersey (NJ) — $0.136 New York (NY) — $0.095 Texas (TX) — $0.03 Wisconsin (WI) — $0.16 State Base Rate (per $100): Estimated Annual Wages/Payments ($): Calculate Estimated Cost ### Estimated Total Cost (E) $0.00   **The Formula:** **![Screenshot 2026-03-10 at 8.25.08 PM](https://faq.thenopi.org/hs-fs/hubfs/Screenshot%202026-03-10%20at%208.25.08%20PM.png?width=337&height=77&name=Screenshot%202026-03-10%20at%208.25.08%20PM.png)** - **Step 1:** Obtain your state's base rate. (Due to privacy, the [Policy Rate Dashboard](https://app.apintego.com/account/dashboard/E330381/policies/P1097139-L1114448/policy-rates) is only accessible by the NOPI team. Please [contact us](mailto:support@thenopi.org) for your specific rate.) - **Step 2:** Multiply that rate by the total estimated wages/payments for the 5/3 – 5/2 period. - **Step 3:** Divide the result by 100 to find your total cost. ### Bonus: Email Template for Contractors If you need to request a certificate from your contractors, feel free to use this: > **Subject:** Action Required: Certificate of Insurance for \[Program Name\] > > Hi \[Contractor Name\], > > To comply with our annual Workers' Compensation audit, we require a copy of your **Certificate of Insurance (COI)** showing active Workers' Comp coverage. > > Please send a PDF of your certificate to us (and CC [support@thenopi.org](mailto:support@thenopi.org)) by **\[Date\]**. If you do not carry your own insurance, please let us know immediately so we can adjust our program's premium budgeting accordingly. [![](https://faq.thenopi.org/hs-fs/hubfs/nopi%20logo%20gradient.png?width=200&height=76&name=nopi%20logo%20gradient.png)](http://thenopi.org) Nonprofit Organization for Philanthropic Initiatives (NOPI) Copyright © 2026, Nonprofit Organization for Philanthropic Initiatives (NOPI)