Anonymous
Not applicable

Business & farm

workers compensation or premiums for workers comp insurance (deductible).   most states require companies to carry w/c insurance on employees unless company gets approval by state to be self-insured.  in such case, w/c payments would be deductible. now if state requires a business to carry w/c ins but it doesn't and has to pay w/c settlement , then to be deductible under IRC 162 the payment would have to be ordinary and necessary.    This might not be the case if the company is violating the law by not carrying required W/c  insurance.