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Premiums vs Platform Access Fee
Contractor premium payments are the contractor's responsibility and are distinct from software licensing fee (referred to as "Platform Access Fee" in the dashboard) you pay to use the 1099Policy platform. The sections below provide additional detail on each.
Insurance Premiums
Insurance premium rates vary by state and contractor role type. The fee is a percentage of the contractor’s total remuneration, typically between 0.6% and 1.7% (with a couple outliers on either end). Rates are set by an insurance carrier.
Premiums must be either paid by the freelancer via credit card, or remitted by the enterprise client on the freelancer’s behalf. Organizations can select their preferred method of payment for the insurance premium when syncing freelancers.
For more information, please see the following articles:
Platform Access Fee
The 1099Policy Platform Access fee is a flat percentage of the contractor’s wage, which is paid directly by the enterprise client. The platform access fee enables 1099Policy to provide technical support, personnel resources, training, documentation, and feature enhancements to the platform.
Billing process
Enterprise client invoices will be sent directly to the billing contact listed on the “Settings” page of the 1099Policy dashboard. The ‘PO Contact’ listed for each assignment will be copied on the invoice.
If you're withholding premium on behalf of the contractor, your enterprise client invoices will include all Platform Access Fees, plus ‘Agency Remit’ insurance premiums (broken down by line item).