workmans comp

Workmens comp is killing me. I have 6 guys and might have to let some go and scale back. That is not the direction I want to go. Any input welcome.

 

Start another corporation.Then you can keep all your guys and not have to pay Workman's comp.At least thats what my wifes accountant said for the trucking business she works for to do.I don't know if the same applies for you but I would ask an accountant.
3 people per corp. in less one is an officer which would be you then you can 4

 

Only problem with running employees thru a "shadow" company is if you really need it ..... ya ain't gonna get it ..... also fore commercial bids with out it ya ain't gonna get it .... it's just a part of business n should be "wrapped" up in your pricing

Don't know bout in DC but fore me it's like $ 8.26 on every $100 of payroll

 

If you can't make ends meet, the sole problem isn't workman's comp. I suggest looking at other aspects of your business.

 

Exactly. I don't get it. If you have more employees then that should mean you are selling more work. You should be recovering the cost of WC. What's the problem?

Maybe you weren't accurately recovering the cost? Maybe you have too many employees for the volume of sales you are generating? It could be a few things, but it shouldn't be solely because you have x number of employees.

 

I agree. Start by looking at your buisness. Obvbiously, if you do not have the work to justify having comp, maybe you shouldn't have it. If that's the case, you should find the work to justify it. Try not to drop it if you can. It will cost you even more to get it back when you're ready. Cut costs some other way if you can. Tighten up routes or cut hours by becoming more efficient. Gas and labor will kill you. Good luck.

 

I can't see 10 bucks per 100 of payroll breaking the bank. To warrant 5-6 employees you need to be bringing in some good, steady coin...no?

I agree with just about everyone. WC for us is around 10-11 per 100 bucks of payroll. Assume my guy works a 20hr week @ 10/hr. That's 200 bucks I'm paying him (less taxes...another topic)....however I must factor in the 'extra' 25 bucks its going to cost me per week inWC. Therefore I'm going to make sure I'm charging my customers above and beyond what I pay my employee..including WC, benefits, etc.