Insurance For PT Employee

Discussion in 'Business Operations' started by Mr Ricochet, May 3, 2006.

  1. Mr Ricochet

    Mr Ricochet LawnSite Member
    Messages: 39

    I'm solo and, am approaching 40 weekly customers. I can handle this many but, when it rains and I have to start combining two days into one it can become difficult. I schedule M-F so weekends are available for catch up............This is my question, can I hire a guy part time and not buy workers comp insurance for him? Can I hire him as an independent contractor and not be liable if he breaks a leg?............I had a 26 yr old approach me looking to help out part time and got to thinking there are times I could use this kid but, if I have to pay the $600.00 insurance for him it would not be worth it for the few times I'll use him...........Who has run into this problem and what did you do about it.
  2. kevinsky

    kevinsky LawnSite Member
    from Nevada
    Messages: 75

    Mr. Ricochet,
    The answers to your questions are No and No. Don.t think about hiring him as an independent contractor. It's not legal if you dictate what he does and when he works. I think you should hire him part time and get set up legitimately Your cost to have him will be based on payroll and you can figure about $20.00 on every $100.00 you pay him - insurance being about $6.00 of that twenty. Take the plunge and Good Luck!

    ENDURO LawnSite Member
    Messages: 64

    I am also thinking of hiring someone and have thought of the independent contractor route. I wouldn't really be doing it to pay less money, but to ease the burden of paperwork and record keeping on my part. I also think that paying a person by giving them a cut of each job and letting them set their own schedule or route, would help motivate them to do a better job. I wouldn't have to try and keep track of their hours and try and motivate them to work fast. I hate trying to motivate someone. I would rather let the job itself and the prospect of getting more accounts by doing a great job be the motivator. This is of course all in theory for me since I've never hired anyone. Not sure what to do. Anyone who has tried both, feel free to comment. Thanks.
  4. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Messages: 2,524

    I'm looking at possibly hiring someone to help out on weekends. He can do some of my commercial accounts when the businesses are closed. Much easier. What are the pros and cons of allowing this person to use his own personal truck to tow a 12' or 14' trailer with my equipment. Since he will be using his own truck and on his own flexible time, could I pay him as a sub? Maybe pay a % of the job plus fuel allowance? Thanks:)
  5. grassyfras

    grassyfras LawnSite Bronze Member
    Messages: 1,475

    My insurance agent told me that I can have an employee covered if he doesn't work too much and as long as I let him know. I'm sure your always going to have to pay the other good stuff.
  6. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Messages: 2,524

    Are you talking workers' comp, liability, or what?:)
  7. grassyfras

    grassyfras LawnSite Bronze Member
    Messages: 1,475

  8. 6'7 330

    6'7 330 LawnSite Bronze Member
    Messages: 1,821

    If I'm not mistaken, a sole proprietor In Illinois can legally hire a worker without getting workers comp.BUT you are still financially responsible if he gets hurt on the job, and almost all commercial bids require you to have it on your workers .Forget the independent contractor routine, unless stateville is appealing to you.
  9. lawnboyblake

    lawnboyblake LawnSite Member
    Messages: 89

    So that means that I can hire my guy and pay him fully legit like everyone should but don't "Have" to buy work. comp. ins.? I'm going to call my insurance guy on this and see what he says. Yes, I'm a sole prop.
  10. grassyfras

    grassyfras LawnSite Bronze Member
    Messages: 1,475

    Ya definitly call and make sure their in the know of it and hopefully than ur ok. Good luck!

Share This Page