Workers Comp raised in Illinois HELP!!!

Discussion in 'Business Operations' started by hartmas, Mar 3, 2006.

  1. hartmas

    hartmas LawnSite Member
    Messages: 71

    I hire one employee that works about 25 hours a week. I paid 761 dollars last year for him. This year my company raised it to 1013 dollars. What the ******
    Does any one from Illinois know of a better deal or am I at the mercy of the insurance company to charge what they want? A lot of companies will not even do one this small.

    Any help would be appreciated.
  2. jsf343

    jsf343 LawnSite Bronze Member
    Messages: 1,786

    You and I are in the same boat. I was told by my insurece guy it would only be around 700 or 800 bucks. ended up being $1197.00!!!! I was a little upset.
    My guy will work very close to what you are saying for your employee.
    Sad isn't it? Jeff
  3. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    The rate is set by the state. You are screwed. Just pay it, turn on the news and listen to politicians talk about how much the care about the small businessman.
  4. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    Yes the rate is set by the state ....but are you sure your numbers are fore WC only n not including fed n state payroll taxes as well as state unemployement taxes or this total from the insurance company also includes your liability cost as well ??

    Also your "code" used by your insurance company ... do you do tree work or heavy construction ... this will put you in a higer bracket

    Anywho ..... fore me down in FL every $1000 of gross payroll cost me just over $84 in WC
    or if my guy made $10K last year he would have cost be just over $840 in WC

    If this is the case don't feel so bad .... they get from $13-15k every year from me
  5. 6'7 330

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

    Since the 80’s, Illinois has allowed insurance companies to set their own premium rates.WC carriers can set their own rates. There is a private insurance agency, that does issue advisory rates to the insurance companies.
  6. Flow Control

    Flow Control LawnSite Bronze Member
    Messages: 1,267

    I got a nice letter from the BWC stating that in years past our rate of 7% was subsidized by the government by 66%. And that due to poor money managment they wanted the 66% from 05 due within 2 weeks. Asking a seasonal company to write a 2K check within two weeks during there off season because of poor management sucks.
  7. CAG

    CAG LawnSite Senior Member
    from ct
    Messages: 344

    Man you guys r getting off easy i pay 14.28%...
  8. Flow Control

    Flow Control LawnSite Bronze Member
    Messages: 1,267

    F' that. Then what does a $10 per hr guy cost you ? $13 or $14? without health insurance. I would just say if you want to work for me then spend the $400 and get your own GL insurance and your are now a sub and expect a 1099 at years end.
  9. DLCS

    DLCS LawnSite Platinum Member
    Messages: 4,386

    Can you say illegal, assuming they are using your equipment.
  10. CAG

    CAG LawnSite Senior Member
    from ct
    Messages: 344

    I have payroll taxes too. For them to be a sub they would have to have tax id #'s and I think that would have to use their own equipment. The workers I have hired cant ever make it through the week without running out of money, so you forget them trying to save for equipment, taxes, insurance payments and other expense's

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