Workers comp info

Discussion in 'Florida Lawn Care Forum' started by mjlcare2, Aug 14, 2012.

  1. zturncutter

    zturncutter LawnSite Bronze Member
    Messages: 1,308

    So what did you find out ?
  2. mjlcare2

    mjlcare2 LawnSite Member
    Messages: 200

    nothing yet.. been a busy two weeks.. looking at purchasing another business so I've been dealing with all that paperwork for the banks, CPA, etc.. will update as soon as I make the call
  3. zturncutter

    zturncutter LawnSite Bronze Member
    Messages: 1,308

    Any new info ?
  4. mjlcare2

    mjlcare2 LawnSite Member
    Messages: 200

    Dang.. I keep forgetting to update this. Nothing set yet. I just picked up a new CPA and she is working on a couple of quotes. From what I gather the auditor took both owners dividends(investment payout) as payroll when it should not. They also changed our classification rate to 50/50 managment and labor when I stated both owners are out in the field (meant overseeing jobs,etc). Management rate is $4.x per $100, whereas labor is $7.x.. both are small mistakes by the company that can be fixed but that could have cost me thousands.. I am switching for that fact alone.. I can't afford them to make little mistakes and who knows.. maybe they made them on purpose to get more money out of us.. I doubt, but you never know. Will update again when I finalize with a new company and what not.
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  5. mowerman87

    mowerman87 LawnSite Member
    Messages: 75

    Duekster- I noticed you're located in DFW and was just hunting for some regional info on Workers Comp. My situation is that I'm trying to bid on some municipal work and, as you know, government contracts require WC insurance. I feel like it may be worth adding this cost to my overhead given the volume of these contracts and the fact that they last for 2 years. 2 years ago, I tried to bid on these very same contracts (mowing parks, right-aways, etc.) and stalled out due to the WC issue. At the time, my research and conversations turned up agents who wanted the whole year's worth of premiums up front... Is this standard for the WC insurance biz? And if you don't mind saying, what kind of set-up do you have? Also, any other general info on the subject would be appreciated. Thanks!
  6. mjlcare2

    mjlcare2 LawnSite Member
    Messages: 200

    You can go with a pay-as-you-go set up meaning it comes out with your payroll however frequent that is for you.. WC is no cheap and I can see why most people don't carry it.. roughly $7 per hundred in payroll, ( IE you pay your guys $400 a week, $28 a week is WC) you have to report your earnings to them every year when they audit you and if they find a mistake in payroll, you could be left with a couple thousand dollar bill.. not to scare you.. but I would consider hiring a CPA if you don't have one already.. they usually have pretty good contacts in WC companies and such.. otherwise to do it all yourself is a ton of paperwork and confusion.
  7. jvanvliet

    jvanvliet LawnSite Gold Member
    Messages: 3,944

    Rates are promulgated in Florida, ask if they are projecting a higher payroll.

    I go through Wells Fargo for payroll and comp; I only pay comp based on my actual payroll. Some independent agents will project a higher payroll than actual, maybe they get a bigger commission.
  8. Duekster

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

    They want 20% upfront.

    Problem with most Muni jobs is many want Bid Bonds. I just have not taken the time to be rated for bonding.

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