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Insurance and work comp

Discussion in 'Business Operations' started by GrassTec, Mar 26, 2014.

  1. GrassTec

    GrassTec LawnSite Member
    Messages: 83

    I have won a big commercial job for this year but needing work comp for my 2 part time employees. Can anyone help me? Give me some advise, I have never had work comp and pay my guys cash. Any help would be appreciated, thanks
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  2. CreativeLawncareSolutions

    CreativeLawncareSolutions LawnSite Silver Member
    Messages: 2,017

    This won't end well.
  3. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Messages: 2,763

    Paychex, they can answer all your questions.
    Posted via Mobile Device
  4. johnnybow

    johnnybow LawnSite Member
    Messages: 157

    Prepare to be bent over for comp
  5. GrassTec

    GrassTec LawnSite Member
    Messages: 83

    Isn't work comp usually based off how much you pay them?
    Posted via Mobile Device
  6. shane772

    shane772 LawnSite Member
    Messages: 128

    One reason I am solo and plan to stay that way. I hope you update this thread so I can learn something. Good luck.
  7. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Messages: 4,685

    Your cash system is now gone you will need to be completely on the books the works. Workman's comp is a % of what you pay them iv been around 4-4.5% for the last 10 years. The way they figure it is they either will get the info direct through your payroll company and just deduct it each week or you can pay up front and they will audit you each year to see if you paid enough or to much. And so you will need to be legal as they will not take your word on how much cash you think you slipped them through out the year. Further more seeing your new you can expect higher rates till your proven. I hope the job is very big because this is going to cost you 1000s to comply.
  8. GrassTec

    GrassTec LawnSite Member
    Messages: 83

    Who do you use for a payroll company? The insurance companies I've called into the workers comp is just a premium I pay and I pay my works like I have but then if I pay them for or less it gets adjusted at the end of the year. I have never used a payroll company for paying them. They would only be part time guys which I pay $12 an hour. So I would say no more then $600 a week between the 2 guys, so they figured up roughly $18,000 a year for employees. Which came to about $1200 in workers comp. doesn't seem outrages to me. The account is mainly a mowing account but with maintenance also which is around $45,000 plus my other business I've had over the years. I think this is the next step for the company to be able to attract more commercial side of the business.
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  9. jsf343

    jsf343 LawnSite Bronze Member
    Messages: 1,786

    why are you paying them cash? Irs will have an easy time figuring out what you are doing if you are not careful. set them up on payroll either use QuickBooks or as somebody just mentioned a payroll service, by doing this you make yourself legal and can write off all the wage. Yes to get the commercial accounts you will need commercial insurance and w.c. but your insurance guy will be able to help you get set up the right way and you will be legit if something goes bad. We had a rock go through a window at a Lamborghini dealership and come 4 inches from a Yellow British Spider and all I can say is thank goodness we had what we needed.
  10. Vanderhoff Landscaping

    Vanderhoff Landscaping LawnSite Senior Member
    Messages: 396

    Although I'm solo, I'm subscribing anyway.
    Posted via Mobile Device

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