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Workmans Comp

Discussion in 'Business Operations' started by McFarland_Lawn_Care, Apr 14, 2009.

  1. McFarland_Lawn_Care

    McFarland_Lawn_Care LawnSite Bronze Member
    Messages: 1,445

    So I've done a search on here and need some feedback on workman's comp insurance. I just got a quote from my current insurance company to add one part time person this summer who would be ONLY mowing lawns for me. My estimated payroll for him would be $5,000. My quote from workman's comp that he gave me is $900 for the year. My agent fully understands that he will only be MOWING, but he still groups him under "general landscaping" which has a $16 rate per $100 in wages. I have always been solo before, so this was a bit of a shock for me. I'll probably end up paying it, but just wanted to run it by others and see if it seems to be the average rate and if I'm doing it correctly. Thanks in advance for the feedback.

  2. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    not sure in your state, BUT here in TEXAS it's like 4.

    if you have 4 or under employees your NOT required to have Workers Comp.

    and NO your insurance sales man wont tell you this
  3. mgm

    mgm LawnSite Member
    Messages: 44

    In Texas the TWC (Texas Workforce Commission ) states that with even one employee and if the owner is being paid over $1500 per quarter, IS subject to unemployment taxes.
  4. JimmyStew

    JimmyStew LawnSite Senior Member
    Messages: 367

    Unemployment Tax is not Workers Comp Insurance! The rules here are very similar for Unemployment...as for Workers Comp, the only one that doesn't have to be covered is me as the owner. Any and all employees must be covered by WC! As for the $900 premium, that sounds like a "minimum premium" to me. I paid $800 last year as a minimum. My part timer never hit the ceiling to raise my premium past that.
  5. vacamper

    vacamper LawnSite Member
    Messages: 30

    I don't know about wc in Maine, but in Virginia the wc rate for the landscaping class is almost double that of lawn maintenance.
  6. McFarland_Lawn_Care

    McFarland_Lawn_Care LawnSite Bronze Member
    Messages: 1,445

    Yes, Vacamper...that seems to be the problem. I ONLY do lawn maintenance, but it seems there is only one class for Maine that lumps all of "landscaping" together....I'm not sure though....Trying to find a way around this foolishness..lol =) thanks for your insight...
  7. LB1234

    LB1234 LawnSite Gold Member
    Messages: 3,208

    I agree. It sounds as if it is the minimum amount of premium. I run into this problem with our low payroll as well. If I don't hit it I owe the minimum.

    @ 5k for the season comes out to be 800 for the year..not including all the taxes and surcharges that comes with it. FYI, find out what it is REALLY going to cost you.

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