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lawnwizards
12-30-2005, 08:11 PM
can you pay into your own workmanscomp account and distribute the money to your employees when the get hurt or do you have to pay to the govt.'s account? i've been wondering about this for awhile now and i appreciate any and all responses. thanks.

Flex-Deck
12-30-2005, 08:16 PM
Workmans Comp is stricktly pay in and hope nobody gets hurt and needs it.

stumper1620
12-30-2005, 08:18 PM
can you pay into your own workmanscomp account and distribute the money to your employees when the get hurt or do you have to pay to the govt.'s account? i've been wondering about this for awhile now and i appreciate any and all responses. thanks.
You need to be a very Rich man to Qualify as a self insured company.

hoyboy
12-30-2005, 10:17 PM
First of all, it's not a government account. It is mandated by government, though, at least in Illinois. Each state has it's own rules, but I'm not aware of a state that does NOT mandate some form of worker's comp. insurance.

That doesn't mean you have to make a claim for every little incident. You can use your own funds to take care of the sprains and bee stings. This will keep your mod rate down.

Good luck...

Dan

JimLewis
12-30-2005, 10:53 PM
Most states allow you to forego worker's comp. if you set yourself up to be self-insured. That is, you put a LARGE sum of money in an escrow account that you can't touch and it has to be used strictly for workers' comp. So if you have an extra $100,000 or more, this might be the route to go for you. If not, you're gonna have to get worker's comp. like the rest of us.

stuie
12-31-2005, 03:33 AM
How much is workers comp in the US? Just got my bill for next year $2250 aussie pesos.payup payup :gunsfirin

JimLewis
12-31-2005, 06:01 AM
It varies from state to state. Some states base the rate on hours worked. Other states (like mine) base the rate on dollars earned. Which is a cheap way to get more money out of an employer. And then secondly, it depends on your mod rate - which is how big of a risk you are and that's based on previous injuries. Anyway, it's usually about $6-7 per $100 earned around here, if I recall.

rodfather
12-31-2005, 08:22 AM
It is X dollars per $100 of payroll and the % is based upon what category you are placed in. Many people don't know it but some states have a rate category for lawn mowing and another one for landscaping. Your best bet would be to check with your insurance agent to find out cause mowing is much lower than landscaping per se.

SodKing
12-31-2005, 09:31 AM
I was improperly classified for years in when we first started...I did like the refund check when we filed a complaint. That being said you can specifically exclude yourself, however, I suggest not doing so. I almost completely removed my finger this fall and since I keep myself covered by the insurance, workers comp paid completely for the re-attachement. If I were to try to file for that under my own health insurance not only would have they tried to fight it and not pay for it, I would have had to pay the deductable, the 25% copay, and could have been liable for insurance fraud.

JimLewis
12-31-2005, 02:32 PM
.... Many people don't know it but some states have a rate category for lawn mowing and another one for landscaping. ....

This is true. But it's not as big of a difference as I once thought. Our policy is split into two categories, because half of my workers are involved with strictly lawn maintenance and the other half are involved with landscape construction. But I only pay like $1 more, per $100, for the construction workers comp. than I do for the maintenance worker's comp. It's a difference. But it's like one is $6 per $100 and the other is $7 per hundred. Something like that. Not too big a difference.

rodfather
12-31-2005, 03:25 PM
For us in NJ Jim, the difference is 7 dollars and change.

lawnwizards
12-31-2005, 10:58 PM
i didn't expect all of these great replies. thanks for all the help guys.