My wife had started a single member LLC (type C corp) in 2005 and did not realize even though she did not employ any individuals workers compensation insurance is required in NJ. As a first time small business owner, she had no clue this was needed. The only compensation the firm paid was a one time payment to her (the owner) in Dec 2005. Recently received a cross-match letter from the State requesting proof of coverage. She is responding with a letter indicating she did not know workers comp was needed and as a first time owner of a small business with only first year in operation, she did not know it would be needed. I understand there is a fine associated with not having workers' comp. Will the Dept. of Labor accept her response and not hold her accountable in this case ? Please advise.