can you do this?

Discussion in 'Business Operations' started by lawnwizards, Dec 30, 2005.

  1. lawnwizards

    lawnwizards LawnSite Silver Member
    Messages: 2,439

    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.
  2. Flex-Deck

    Flex-Deck LawnSite Silver Member
    Messages: 2,845

    Workmans Comp is stricktly pay in and hope nobody gets hurt and needs it.
  3. stumper1620

    stumper1620 LawnSite Bronze Member
    Messages: 1,889

    You need to be a very Rich man to Qualify as a self insured company.
  4. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Messages: 346

    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...

  5. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,876

    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.
  6. stuie

    stuie LawnSite Member
    Messages: 206

    How much is workers comp in the US? Just got my bill for next year $2250 aussie pesos.payup payup :gunsfirin
  7. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,876

    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.
  8. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    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.
  9. SodKing

    SodKing LawnSite Bronze Member
    Messages: 1,641

    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.
  10. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,876

    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.

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