worker comp ??????????

Discussion in 'Starting a Lawn Care Business' started by tsi guy, Mar 17, 2008.

  1. tsi guy

    tsi guy LawnSite Member
    Posts: 41

    I went to give bid today at a industrial business. they wanted proof of worker comp. I told them That I didn't need worker comp because I'm a solo. They told me I still needed it. are there any other sp out there that ran into this problem. I talk to my boss and he said he carries worker comp for snow plowing even though he sp. he said it's 50 buck for six months. just more money to spend. any reponses will be appreciated
     
  2. lawnpro724

    lawnpro724 LawnSite Silver Member
    Posts: 2,201

    You don't need workers comp if its just your self but you do need to have contractors liability insurance. Unless I misunderstood what you wrote your boss is feeding you a line of B.S. Worker comp is one of the highest overhead costs I have. You said $100.00 a year? Try closer to $2,500 a year for just one employee and for one full time and one part time I pay closer to $5,000.00 a year.
     
  3. IMAGE

    IMAGE LawnSite Bronze Member
    from midwest
    Posts: 1,134

    Ok so yes you know you dont need if since you dont have employees. But to be correct with your state you have to go to the Workforce Safety(workers comp) office, and sign a form stating that you do not want workers comp on YOURSELF, and THAT YOU HAVE ZERO EMPLOYEES.

    Still all that does is get you legit with the state. All a part of starting up.

    When it comes to working on commercial places, they are going to require you have it, and to show proof (a letter showing your workers comp account # and saying "Preimum Paid").

    I went and got mine set up for one employee, and no coverage on me. I am at the minimum level, because I dont expect to use a helper very much, and mine is about $250/yr. It's all a part of doing business.

    Expect most commercial places, or property managers, to require you to submit proof of GL, and a W-9 form also.
     
  4. Down2EarthLawns

    Down2EarthLawns LawnSite Member
    Posts: 191

    For my commercials, I provide them a copy of my Comp Exempt letter that I recieved after filing.
     
  5. memac259

    memac259 LawnSite Member
    Posts: 49

    Where can you get an exempt letter from??
     
  6. tamadrummer

    tamadrummer LawnSite Bronze Member
    Posts: 1,102

    We get ours from Alex Sink's office. I don;t know who you get it from in Maryland.
     
  7. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Posts: 1,185

    when you go down to the wokers comp.office tell them you need a application for exemption. Here in Tampa it cost me $50 to apply
     
  8. tsi guy

    tsi guy LawnSite Member
    Posts: 41

    the way they explained it to me, is that I'm a employee for them. they hired me and pay me to do a job for them just like there employees. so for exaple if I was plowing snow for them and hit a light pole and hit my head against the windshield and broke my a neck and was off work for a period of time I could sue that company. so that is where workmans comp comes in. I don't know what your states require but ohio requires it. I asked my bank the same question for next year for snow plowing and told me the same thing. Need workmans comp, not a exempt letter but coverage. It's news to me and yes 100 dollars for year. so I'm going to bite the bullet and have to get it.
     
  9. IMAGE

    IMAGE LawnSite Bronze Member
    from midwest
    Posts: 1,134

    You need to look up the defination of an employee. It is very clearly outlined on the IRS website. The definition of an employee they give is THE STANDARD for all 50 states. There is a big difference between an employee and a contractor/subcontractor. Sorry I dont have the link handy. I wish SnoFarmer was here- he would give you the link.
     
  10. CreativeEdge

    CreativeEdge LawnSite Member
    Posts: 65

    I am a business w/ no employees, some companies require that you have workmans comp even though you are by yourself. Here in GA it is $800/yr for myself. The worst part of it is that if I were to get hurt, it does not help me in anyway. I just passed on a bid opportunity for all of the Bank of Americas in my county b/c what I would make per store would not justify me having workmans comp. If this company requires it, they have to have it even if you are the only one working. If it worth it to your for 100 bucks then I would say go ahead and get it. Atleast it wont hinder you from other jobs in this next year.
     

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