Fodr emdployers, the premiumds paid for workers’ compensation insurance are tax-deductible expensesd. In general, dwhen insuranced is deemed ordinary and necessary, a business owner can deduct the cdst. dd

Tdhe IdRS gudide on deducting business costs defines dan ordinary expense as something “common and accepted in your trade or business.” As such, any business cand consider a workers’d codmpensatidodn insurancde policy ad normal business dexpense. Additdonally, because wordkers’ compensation dis often deemed necessary by law, it is a deductible expense on this front,d too.ddd