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Workmans Compensation

Discussion in 'Business Fundamentals' started by MileHigh, Oct 8, 2008.

  1. MileHigh

    MileHigh PlowSite.com Addict
    Messages: 1,827

    I need to acquire workmans compensation for my business in order to lock up this contract, and hopefully a few more. I guess I need it for myself and for any workers I will have on site.

    What are you guys paying for this out there? I heard they base the rates off what your payroll is.
  2. stroker79

    stroker79 2000 Club Member
    Messages: 2,802

    im waiting on my quote from ADP.com right now.
  3. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    dunno but i wouldnt mind having workmans comp. i could stay home all winter and watch cartoons.

  4. stroker79

    stroker79 2000 Club Member
    Messages: 2,802

    Thanks for the new sig quote!
  5. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    Mine goes through my payroll company. They take care of all of it, its an extra charge on a weekly basis (for the comp), but I don't have to deal with a big premium at one point then an audit, etc, its taken care of.
  6. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    You can't get workmans comp on your self as the owner of the company.

    If you could, it would be like bribrius said and everyone would file and stay home all winter. And I think you can only do unemployeement if you are a corp of some kind.
  7. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,993

    They base it of payroll and the state determines the rate. They classify your business, and workers i.e. PA wants $.54 per 100 dollars paid to the employee for clerical, DE wants $1.21. Weld Shop workers are $5.? (I forget.:blush2:)

    In Pa, DE, MD I know from first hand experience you are required by law to have Workman's comp on ALL employees.

    candidate for gibberish of the day:nod::jester:

    officers can option out of Workman's comp but it's required for employees. If you do opt out of W/C be sure you have good health insurance and dis-ability insurance.

    Un-employment insurance on the other hand, owners can't collect, unless you're a corporation and you dissolve the business. Though you can ask to pay it at the state level for the fed un-employment credits.
  8. stroker79

    stroker79 2000 Club Member
    Messages: 2,802

    Well I just got my WC quote back.

    For lawncare Im paying $3.92 per $100
    For snowplowing its at $9.86! per $100

    They have plowing classified as streets and roads which I do not do so I want to have that changed in hopes of it going down. The INS company is Guard INS group.

    Also, you CAN get WC for the officers of the company, not sure where you heard that you cannot?? I opted out of it for the summer but im included during the winter.
  9. MileHigh

    MileHigh PlowSite.com Addict
    Messages: 1,827

    stroker79...That seems real high...

    They basically want 10% of your payroll for snow? That's insane.
  10. stroker79

    stroker79 2000 Club Member
    Messages: 2,802

    yeah but im not taking a personal check during the winter so im not too worried.
  11. BigLou80

    BigLou80 Senior Member
    Messages: 558

    WOW you guys need to wake up to the reality of being a legit business. By the sounds of a lot of the replies here not to many of you are playing by the rules (at least in my state anyhow) I pay 18% for my commercial construction and right around $10 for residential construction. Because thats how my business is classified(construction) the best I can get is $10.00

    I don't like it any more then the rest of you but its a fact of life thats called overhead. I add it to my price and call it a day. Its also nice knowing that if one of my employees take a fall or throw out thier back with a shovel they can't come back and sue me.

  12. BigLou80

    BigLou80 Senior Member
    Messages: 558

    how are you going to support your self during the winter ?
  13. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,993

    If you are an owner of a corp you can take corp dividends!

    no W/C, no unempl., SS, none of that, you pay capital gains on it but if your account is any good;) TALK TO YOUR ACCOUNTANT before playing this game, you have to do it right or it will screw you in the long run.
  14. T-MAN

    T-MAN PlowSite.com Addict
    Messages: 1,363

    The reason your quoted rates are so high is do to not having an experience rating. You are not established with comp so you have no rating. You are thrown into a pool with other no ratings, cancellations, or high risk (lots of claims). As you pay over the years you are issued a rating each year. It is based on how much you pay in, and what claims you have. It is called your Experience rating.
    Once you pay in for about 3 years you will start to see reductions if you dont have a bunch, or major claims. Honestly dont think you will find a carrier that will be half or much lower. The rate is set by your state, so the only wiggle room will be in the Agents cut, or the Carriers profit.
    The other thing you need to do is "bundle" your policys as most Carriers wont just sell comp. One word of advice is DO NOT get canceled, as you will then join a black list and you will be on it till you can get your rating up. Its important to do your best to protect this rating.
    Good luck, and welcome to my nightmare LOL
  15. jglandscaping

    jglandscaping Senior Member
    Messages: 271

    NH State law requires that ANY members of a company (owners of an LLC, board members, office or field workers) MUST have W/C on yourself. It is determined by state and way the company is setup, LLC, Corp, Sole proprietor.

  16. stroker79

    stroker79 2000 Club Member
    Messages: 2,802

    My wife is the bread winner right now. We live off her salery and keep all the money in company.

    To respond to your previous post, I THOUGHT I had WC before. That may sound crazy but I pay ADP to process my payroll and handle my taxes and all. I had requested to have WC. Not knowing the processes in starting and owning a company I did not realize what it takes to start it up. I make sure to the best of my knowledge that I am legit and stay that way. That is why I have an experianced company take care of all my paperwork. I could sit down and learn it all, but why? Then I have even more crap to do. As far as I know now, I am completely legit and proud of that. from day one I have had plenty of ins coverage and the whole 9 yards.

    Thanks for that explanation! Thankfully as my payroll company processes the payroll they take out from my account what is needed for WC right then based on the hours that reported. I like it that way because then I dont have to save the money or worry about the reports/paperwork. they do it all.
  17. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    I had a x that owned video stores and did that. Had a payroll company deal with it. The more employees she had to cheaper it was per employee to cut the checks.
    As far as legit, I have been around the block enough to know that No company is completley legit.
    When i hear someone say they are totally legit it sends up a red flag in my mind, Never mind innocent mistakes or negligence, multiple people working together to complete some goal........legit is not possible. You can find illegit crap in ALL OF THEM and the government comes up with new laws everyday. Have you checked the laws today? You may not be legit.. Some companies are worse than others..............
    That is why uncle sam came up with fines. Course some companies decide the fines are cheaper than being legit but that is another story..... lol.
    Last guy i knew that said he ran completley legit went out of business. So maybe he was actually telling the truth. :rolleyes: When you run legit in a illegit environment i guess you dont have a level playing field in which to compete. :confused:
  18. IMAGE

    IMAGE Sponsor
    Messages: 1,747

    you guys go through a seperate company for WC? I pay mine right to the state. I started as "exemt" and got that certificate. Then I needed WC for a bid, and based on how much(little) I would be paying employees annually (until I grow), I got coverage for $250/yr, the minimum premium. '

    I am completely legit. people stare at me in wonder when they say, "i'll pay cash" and I just say, ok the price is the same. I make an invoice for EVERY job, no matter how small, because I want to be able to track REAL growth. I also have every insurance I need, and probally more then I need lol. I'm registered with the state. I pay all my taxes. My business is Completely Legit. Just because you may not be, doesnt mean others aren't.
    Last edited: Oct 10, 2008
  19. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    WC is different in different states, some you pay the state and some go through a typical ins company like amer fam etc
  20. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,993

    You try to be completely legit but I agree it's almost impossable. I met with everybody i could think off, state, country, township, town when we opened a place in MD, still missed a un-employment retraining tax.

    The same with PA. they just sent us a notice that if we buy stuff in "tax free" DE to use in the PA location we have to pay sales tax to PA. I've talked to people who have been in business in PA for decades whom have never heard of this law or knew they had to file the form.