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Workers Comp Insurance

Discussion in 'Employment' started by Jbh0724, Apr 7, 2012.

  1. Snyder's Lawn Inc

    Snyder's Lawn Inc LawnSite Platinum Member
    Messages: 4,530

    But you should have it if do any Commercial work should be a requirement
    Wish government would make it a requirement to be in business and that would stop these weekend mowing companies
    I dont understand why business has to pay it for there employes but when they hire a mowing service they dont require it I dont understand
  2. Duekster

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

    If the business that hired the service does not request a copy then the service company employee is covered by their comp. This is often dropped and lost in the cracks during the audit.

    If the insurance company ever does an in depth audit and See's that vendors providing on-site services do not have comp they will adjust their premiums accordingly.

    Same with Sales taxes too.

    I got a call from a company wanting to know if I collected sales taxes. It seems their last service did not collect sales taxes. The state made the client pay the sales tax for several years of service.

    In this case the client had to pay because the vendor did not charge it. If the vendor had charged it and not paid it, then the vendor would be guilty of fraud.

    Unfortunately, we could not come up with a price agreement. As typical the client wanted more service, better service for the same amount as the other company. How am I supposed to pay comp, gl, match FICA for the same as a company that pays employees under the table? :rolleyes:

    It is what it is I suppose
  3. landscaper2009

    landscaper2009 LawnSite Member
    Messages: 21

    Here in Az I am paying 4.5% pay as you go. I was also informed that if my subs did not have WC and I was audited I would have to cover it. At this point I have decided to just deduct a percentage from my subs to cover the cost if they do not have it. I am looking into the legalities of a WC waiver for subs to sign that may allow me to not have to include sub pay in my payroll.
  4. Duekster

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

    What good is a waiver? You sell yourself the client as having insurance but then use subs? You just account for it in your billing on either end. Same clause also applys to your GL too if you have it.

    Your commerical clients, if any expect everyone on the job to be covered not waivered.
  5. landscaper2009

    landscaper2009 LawnSite Member
    Messages: 21

    I only use subs for my residential install and yes I advertise license, bonded, and insured. I have allways made sure to take the correct actions of doing everything by the book and legally. I only use subs on our residential install side where we are not commercially required to have WC but I feel that it is in the best interest. Of course on the commercial side which we do have several contracts (install and maintenance) these are payroll employees and are covered by all the required insurances. I was just looking into the option for some of my sub install crews if the wanted to option out. If it's not in the best interest of the company or opens up any liabilities then I would never allow it. It pisses me off when some guy or company under bids me just to find out he is not licensed, bonded, insured or paying taxes half the time. I wish the state would crack down more on these guys because they give the industry a black eye.

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