QUESTION 1: What is the NICA
fee deduction on my settlement check?
ANSWER: The "NICA FEE" deduction pays for your Occupational
Accident Insurance. This deduction provides coverage
for On-The-Job Accident Medical Insurance, On-The-Job
Accidental Death & Dismemberment and Disability Benefits
for Independent Contractor drivers. (Please see Occupational
Accident & Disability for specific policy information)
These deductions are mandatory for all Independent Contractors
affiliated with NICA.
QUESTION 2: If I get hurt what do I do?
ANSWER: If you get hurt you will need to initiate your
claim within a 24 hour time frame. Affiliated ICs who
drive should call CMC claims at 800-821-5401 Ext 8883.
QUESTION 3: Do you offer Health Insurance?
ANSWER: Although NICA does not provide Health Insurance
to it’s affiliated Independent Contractors, we do have
relationships with third party vendors. (Please see
Health Insurance)
QUESTION 4: Do you take taxes out of my settlement
check?
ANSWER: NICA does not withhold income taxes from Independent
Contractors. NICA strongly recommends its Tax
Escrow Program. Upon your request and filling out
an Estimated Tax Worksheet and Tax Escrow Authorization
Form, NICA will set aside funds in escrow on a weekly,
bi-weekly or semi-monthly basis from your settlement
check and automatically forward these funds to the IRS
and state taxing authority on a quarterly basis. Please
note, this is an automated
system, funds can not be returned for any reason including
contract termination.
QUESTION 5: Can I have my Tax Escrow?
ANSWER: Unfortunately, you cannot, once these funds are
collected they are automatically forwarded to the IRS and
state taxing authority.
QUESTION 6: Do I have to go through NICA?
ANSWER: It depends. It is the decision of the Contracting
Company. Some Contracting Companies will allow you to
opt out of joining NICA and will settle with you directly
if you have the following in place: 1) You must be incorporated
and obtain a Federal Tax ID Number; 2) Have a Business
License; 3) Have your own Workers' Compensation Policy;
and 4) Submit all copies of the above to your Contracting
Company.
QUESTION 7: What is the NOH Deduction listed
on my settlement check?
ANSWER: Not all Independent Contractors have this deduction,
but if you do it stands for Non-Owned and Hired Insurance.
This is an insurance policy that the contracting courier
company has in place and is passing the expense onto
the Independent Contractor. This policy protects the
contracting company only. The contracting company must
obtain this type of policy when it has Independent Contractors
driving for them that do not carry the recommended commercial
auto insurance with at least a $1,000,000 Limit of Liability.
QUESTION 8: Why should I have Commercial Auto
Insurance?
ANSWER: As a self-employed independent contractor you
are improperly insured if you insure your vehicle with
a Personal Auto Policy. If your insurance broker or
insurance carrier discovered that you are using your
vehicle for business purposes two things may happen;
1. They might cancel your current
policy immediately due to the fact that you did
not disclose this information on your application
(accusing you of fraud) or
2. They could deny a claim if you were in an accident
while contracting under a personal auto policy,
leaving you and your vehicle, unprotected and therefore
being vulnerable to legal action and financial loss.
(Please see Commercial
Auto Insurance)
QUESTION 9: Do you send out 1099's?
ANSWER: Yes. All 1099's are issued by NICA and mailed
out each year by the deadline of January 31st. It would
be wise to hold onto the last check stub for that tax
year since the 1099 does not show deductions.
QUESTION 10: My gross commission does not look
accurate who do I speak to?
ANSWER: Your commission amount is supplied to NICA and
determined by the Contracting Company. If there are
questions regarding this amount you must contact the
company you contract for.
