--- title: "New Jersey Workers' Comp Requirements for Employers | MCC" description: "New Jersey workers' comp: every employer, owners and officers, penalties and the required notice, in the agency's words." url: "https://mcc-solutionsnj.com/bookkeeping/workers-comp-new-jersey" --- Workers' comp · New Jersey # New Jersey workers' compensation requirements Which employers must carry coverage, how owners and contractors are treated, and what the agency's pages say about penalties, the workplace notice, self-insurance and checking a policy. [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) **Short answer.** All employers not covered by federal programs must have coverage or be approved to self-insure; out-of-state employers may need it too. ## At a glance Who must carry it All employers not covered by federal programs must have coverage or be approved to self-insure; out-of-state employers may need it too. Owners and officers Coverage is needed when anyone other than the principal owner works for a sole proprietorship, anyone other than partners or LLC members works for a partnership or LLC, or anyone, corporate officers included, works for a corporation. Independent contractors The Act reads 'employee' liberally: a contract saying someone isn't an employee isn't binding, and the tests look at control of the work and how integral and dependent the worker is. Self-insurance Allowed with approval from the Commissioner of Banking and Insurance. Going without A disorderly persons offense (a fourth-degree crime if willful), with penalties of up to $5,000 for the first ten days and up to $5,000 for each further ten days. Workplace notice Post the Employer Notice of Workers' Compensation Insurance Coverage at the work site; insured employers get it from their insurer. Check a policy The division refers coverage questions to the NJ Compensation Rating and Inspection Bureau. [Open the lookup](https://www.njcrib.com/) Agency New Jersey Division of Workers' Compensation ## In the agency's words **The rule** Want payroll set up right? [Payroll and leave tracking for New Jersey employers](/bookkeeping/payroll-and-leave-tracking-nj), or [employer registration in New Jersey](/bookkeeping/out-of-state-employer-registration). "all New Jersey employers, not covered by Federal programs, have Workers' Compensation coverage" **Owners** "excluding the principal owner, performs services for the business." **Contractors** "a contract or other agreement as to whether an individual is an employee is not binding" **Going without** "up to $5,000 for each additional ten-day period of failure to insure thereafter." **Notice** "Employer Notice of Workers' Compensation Insurance Coverage" ## Three example businesses What the stated rule says for three common setups: - **2 employees, most businesses (not construction), llc:** Required. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=nj&employees=2&industry=other&biz=llc) - **4 employees, construction, corporation:** Required. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=nj&employees=4&industry=construction&biz=corporation) - **6 employees, most businesses (not construction), sole proprietor:** Required. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=nj&employees=6&industry=other&biz=sole) Your own numbers: [open the checker for New Jersey](/bookkeeping/do-i-need-workers-comp-checker?state=nj). ## Worth knowing Uninsured employers, including individual corporate officers, partners and LLC members, can be directly liable for benefits after a work injury. Already on this site for New Jersey: [New Jersey home improvement contractors](/bookkeeping/home-improvement-contractor-new-jersey) · [Starting a business in New Jersey](/bookkeeping/start-a-business-new-jersey). ## Official sources - [Workers' Compensation | Employer Requirements (NJ Department of Labor)](https://www.nj.gov/labor/workerscompensation/employer-requirements/) (checked November 2026) - [An Employer's Guide to Workers' Compensation in New Jersey (WC-373)](https://www.nj.gov/labor/workerscompensation/assets/PDFs/Forms/WC-373%20EmployersGuideWorkersComp.pdf) (checked November 2026) General information, not legal or insurance advice; we are not lawyers or insurance agents. Rules as published on the pages above, checked November 2026. We don't recommend or sell any insurer; the agency or a licensed agent can say how a rule applies to your business. ## Common questions **Who has to carry workers' comp in New Jersey?** All employers not covered by federal programs must have coverage or be approved to self-insure; out-of-state employers may need it too. The agency puts it as "all New Jersey employers, not covered by Federal programs, have Workers' Compensation coverage." **Do owners and officers need coverage in New Jersey?** Coverage is needed when anyone other than the principal owner works for a sole proprietorship, anyone other than partners or LLC members works for a partnership or LLC, or anyone, corporate officers included, works for a corporation. **What about independent contractors in New Jersey?** The Act reads 'employee' liberally: a contract saying someone isn't an employee isn't binding, and the tests look at control of the work and how integral and dependent the worker is. **What happens to a New Jersey employer with no coverage?** A disorderly persons offense (a fourth-degree crime if willful), with penalties of up to $5,000 for the first ten days and up to $5,000 for each further ten days. **What notice must a New Jersey employer post?** Post the Employer Notice of Workers' Compensation Insurance Coverage at the work site; insured employers get it from their insurer. **Can an employer self-insure in New Jersey?** Allowed with approval from the Commissioner of Banking and Insurance. All states: [workers' comp requirements by state](/bookkeeping/workers-comp-requirements-by-state) · [Nevada](/bookkeeping/workers-comp-nevada) · [New Mexico](/bookkeeping/workers-comp-new-mexico) Keeping coverage records in New Jersey? ## Workers' Comp and Business Insurance Records Kit A state coverage checklist with New Jersey's rule and official link, a certificate of insurance log for subcontractors, an injury report and claim log, and a workbook that flags policy renewals and expiring certificates, as Word files and PDFs. [Get the kit ($15)](/toolkits/workers-comp-and-insurance-records-kit) [Free sample](/toolkits/workers-comp-and-insurance-records-kit#free-starter)14-day full refund Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Want payroll and insurance records kept for you? [See bookkeeping services](/bookkeeping/)[Call (908) 444-6373](tel:+19084446373)