Worker's Comp

Discussion in 'Starting a Lawn Care Business' started by Youngbeginner, Dec 23, 2006.

  1. Youngbeginner

    Youngbeginner LawnSite Member
    Messages: 76

    How much do you guys pay for worker's comp?

    Is it figured by using a per worker formula, set fee, etc?

    Can you price it for just 4 months?


  2. crab

    crab LawnSite Senior Member
    Messages: 633

    Talk to you're insurance agent.they will give you the best advice.I can tell you its figured by the year ,with a yearly audit .Prices will depend on what type of work you do and the persons hourly wage.Good luck.
  3. godzilla

    godzilla LawnSite Senior Member
    Messages: 400

    It's a percentage of the worker's yearly wage. You can get it for 4 months, but you have to do it in a certain way (talk with your insurance agent about that). The percentage you pay is going to be based on a few things... 1) what your actual payroll is (insurance companies have a minimum payroll for comp normally) 2) the type of work being performed (varies anywhere from <5% - 100%) 3) company policies and things of that nature.
  4. mattfromNY

    mattfromNY LawnSite Bronze Member
    Male, from Central NY
    Messages: 1,582

    Good luck!! I'm going through the same thing. I didn't plan to get Workers Comp. due to me being a solo op., but I had to get it for one of my commercial accounts. It will cost me just over $4000/ year, based on an estimated wage of $20,000 for me and $15,000 for an employee per year. I had to put a down payment of $800, and 9 annual payments of $350. IT SUX!
    I am pretty distraught over the whole idea of having to put it on myself, but it makes me feel a little better 2 ways; 1) I am covered if I get hurt on the job and 2) It puts me in a league a little higher than some other contractors in my area, a few commercial accounts I have spoken with that require it say it is a short list of contractors they can choose from b/c not many contractors carry it on themselves. (at least not in this area) I will definately need to adjust a few of my accounts this next year due to my rising costs of doing business. It definately put a cramp in my 5 year business plan!!! To answer one of your questions, I talked to a payroll service about putting it into a weekly pay schedule so I didnt have to put so much up front, for an EMPLOYEE, they can break it down and charge you weekly, bi-weekly, however you set up your payroll, but for a solo op. they said they couldn't unless you were a corp. or LLC, and drew a weekly paycheck from the company!?! Hope this helps, I'm learning as I go, and am always willing to share what I learn.
  5. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    it is different in different states, but being completly legit is the only way i think you can get good commrcial properties, and that inclued workers comp and insurance and everything else that sets us apart from the part timers.....
  6. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    We pay $4 and change per $100 of payroll per employee.
  7. Tim C.

    Tim C. LawnSite Member
    Messages: 54

    Matt - You might want to double check with your agent, but I was always told that the owner of the company was not covered by the work comp. policy, that's why I had to get health insurance also. Different companies might write their policies different ways, but I think I would double check.
  8. prizeprop

    prizeprop LawnSite Senior Member
    Messages: 822

    When just starting out with employees they will ask what your estimated payroll will be. Say you anticipate payroll to be $20,000 for the year, at the end of year you will have a phone audit.If you actually had $18,000 for payroll you will get a refund, if you had $23,000 you send them more money.Thats in NJ.
  9. Retiree

    Retiree LawnSite Member
    Messages: 1

    How do you go about getting a commercial lawn care account. I've had a small lawn care business over the years along with my regular full time job. I've retired now from that and want to get some commercial accounts. Whats the best way? Thanks, Retiree..
  10. grassrangers

    grassrangers LawnSite Member
    Messages: 39

    workers comp here in Louisiana is a joke its really expensive..for 3 years i have been carrying it and owner payroll is based off of 36K so i was paying around 5000 for insurance on myself plus around 2000 for employees..all companies write it different but this yeat i wrote the policy different. i took it out of my name put it in my moms name and excluded the owner (my mom) and at the end of the year she writes me a "payroll" check and i only have to pay insurance on my employess and the 100 she pays me so now instead of paying around 6000-8000 a year i only pay about 1800

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