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Workmans Comp

Discussion in 'Employment' started by cutman2000, Aug 20, 2012.

  1. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    Would getting workers comp be economically worth it for a part time employee?
     
  2. nepatsfan

    nepatsfan LawnSite Gold Member
    Posts: 3,142

    Just because it isn't the law in your state doesn't make it a smart thing to do. According to you, you don't need it in your state but that doesn't make it a good idea.

    General liability should cover your employees job site accidents to property damage etc. It will not cover your employees injuries. If your employees ever had an injury they would sue you. Just because you are not required to have workers comp doesn't mean you wont be held liable for their injuries. You aren't required to have the insurance, but you will be held responsible to pay for the employees medical bills, lost wages etc. If that's a risk worth taking for you to save a few bucks, go for it. I wouldn't do it.
     
  3. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Work Comp rates are based on payroll paid.

    My rate is $3.86 / $100.

    That means that for every $100 in payroll, I am charge $3.86 for Work Comp.

    It does not matter if the employee is part time, full time, some time, all the time.

    It DOES matter if the employee is paid $10 / hour vs $14 per hour, as I will get to $100 faster paying $14 / hour than $10 / hour.

    It's cheap insurance.

    2 winters ago I had a 4 year employee cut 1/2 of his pinky off in my log splitter, splitting wood for me.

    He and I both filled out paperwork, work comp paid all of the bills, unemployment insurance paid for part of his time off.
     
  4. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    So workers comp is not expensive at all? How is it paid, monthly, quarterly, etc?

    The unemployment insurance, is that something I have to pay along with workers comp?
     
  5. spazfam

    spazfam LawnSite Member
    Posts: 146

    The rate for workman's comp depends on a lot of factors such as state you do business in, years of experience in field and in business. WI is a min $900.00 a yr or 9.68/100.00.
     
  6. cutman2000

    cutman2000 LawnSite Member
    Posts: 202

    So I just look for a company online or local?
     
  7. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    I do not think Owners are covered by Comp even if you wanted it.

    To the OP. I tend to agree just because you are not required to carry comp, to does not mean you are not responsible for employee welfare. Look at the OSHA laws.
     
  8. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    Read my post in your other thread under business management. You may understand more about my Quickbooks reasoning.

    Unemployment insurance SHOULD be paid with whoever does your payroll taxes.

    U.I. is "cheaper" than work comp, but if you lay your guys off for the winter, and they claim unemployment insurance, your rates will increase quickly.

    Work comp rates vary GREATLY between insurance companies.

    Even with my current work comp through Hartford, the fact that I run it through Quickbooks, I received a cheaper rate per hundred than my insurance agent could get me with Hartford.

    The Quickbooks work comp was 1/2 of what I was paying previously.
     
  9. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    You can cover yourself with work comp in MN as an owner.
     
  10. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    I found the Hartford rate good through QB too but not overly greater than I got independently. I decided to stay with my agent and bundle my GL / WC for a better overall rate.
     

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