Workers Comp. And Overtime

electro

Question,
Had a lunch today with 2 other contractors here in New Jersey. They didn't know that you don't pay workers comp. on overtime. Saved them a fortune, they bought lunch. So I thought I'd put it out there. Don't know about other states.

Electro

hauoli63

In Virginia, you pay worker's comp based on all of your employee's compensation ... regular pay, overtime, sick, and vacation. When we get audited, they want total compensation, not just regular pay.

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GMeyerConstruct

Electro, I was told you DO pay workman's comp on overtime, just at the base rate however. Did you hear differently, or are you reading it wrong? That should come up on an audit anyhow regardless, so I don't know how that information could save them money really not to sound crass. Regardless, that's for the post and heck I ahve a lot to learn so maybe my information I received is wrong :-) I also need an estimator/sales guy if you know of anyone in Southern NJ area. Thanks! Gary 856-486-7888

Bob Kovacs

"I also need an estimator/sales guy if you know of anyone in Southern NJ area. "

If you're willing to pay around a buck-fifty a year, I'll head down and do all the sales and estimating you want. I'm in central NJ (Woodbridge) and a move to south Jersey would be easy.

Bob

Richard Kaller

Hauoli63,

You may want to check with an insurance consultant if you are paying WC on wages with no discrimination. Our NetWork is in all States and unless there is something unique in VA and has changed since my companies worked in VA the insurance company was paid WC when there was a WC risk. There is no WC risk with vacations. Furthermore, the auditor should be alerted to the overtime and the appropriate adjustment made. Typically the WC risk is not considered to go up because of overtime. If you have not already done so there should be different classifications for different work types at different rates. For example a truck drive should not be paying the same WC rate as a roofer. While it was controversial and was a challenge to achieve we eventually had our WC carrier accept an individual at different classifications in the same day. Pat of the day a truck driver, part of the day a roofer. This was allowed because we had an extremely tight an accurate job cost system. Our WC premium was also $500,000 per annum and we had a $35,000 - $50,000 a year outside consultant managing that account. The consultant saved approximately $100,000 a year. (Check refund) It was only after hiring the consultant did I learn how WC really worked. Until then I listen to people and was ripped off royally. Make sure are getting the best professional advice.

Best of luck…Richard

GMeyerConstruct

Bob Kovacs $150,000 a year as an estimator? I think I'l pass on that number unless you work 80 hours a week and are TERRIFIC at at both! :-)

electro

Let me clarify. WC ins. on overtime is based on 2/3 of the OT rate, which is the base rate. But most contractors don't break this out and Insurance companies don't volunteer this info.

Electro

ConcreteGuy

Workers Comp gets maxed out during the year as well, and, no it isn't necessary on overtime in the Carolinas.

Get a good accountant, peeps!

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David Ross

YOu do not pay WC on the Half of the time and a "half". But you have to break it out correctly. there lots of ways that companies are overpaying get a company that can review your policy.

Double-A

Workers' Comp is usually calculated on regular pay, overtime pay less the premium portion, holiday/sick/vacation pay, bonuses, commissions, contributions by employers required by law such as pension plans or social security, piecework profit-sharing incentive-plans, lodging value paid by employer, housing value paid by employer, payments to employees for hand tools or power tools supplied by employees, meal value paid by employer.... All renumeration in other words.

Virginia is an NCCI state, I believe, as such they use NCCI rules to define renumeration. The premium portion of overtime pay is still deductible from total wages under NCCI rules I believe.

New Jersey is not an NCCI state, they have their own classifications and rules. I can't help there.

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"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

sdc1

In upstate ny for carpenters you paylike 12 to 15 dollors for every $100.00 of payroll.

Celtic

Some of guys have children younger then this thread: 08-30-2005, 09:53 PM

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Double-A

Yup, but its still relevant information.

__________________
"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

Celtic

...and it's still funny

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David Ross

As soon as you got a claim that can duble.

constrkings

Ok, so in New Jersey, what is the final opinion -- WC on base pay or all of it? moved our business from tx so am still trying to figure out alot of the legalities up here.

Double-A

No first hand experience in new Jersey. Best I can offer is this...

New Jersey is not an NCCI state, they have their own rating bureau, the New Jersey Compensation Rating and Inspection Bureau.

New Jersey Compensation Rating and Inspection Bureau
60 Park Place
Newark, NJ 07102
Phone (973) 622-6014
www.njcrib.com

I know this doesn't answer your question, but I hope it points you in the right direction to get a real and conclusive answer.

BTW, their site supports only Internet Explorer version 5 and up. Other web browsers won't work correctly.

__________________
"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

Double-A

Bleh, insurance-speak...

OK, I found this on that site.

Much better to read it in context...

http://www.njcrib.com/Manual/Part3S1-12.pdf

Page 103 of 155, starts on page 102 and goes on to 103 for overtime pay.

Still might be good to call them and get this translated into English.

Hope this helps.

__________________
"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

Floordude

You pay WC on all documented money(checks) written to the employee, including Christmas Bonus, written on company checks.

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Double-A

Um, no you don't. Two specific examples would be dismissal or severance pay, except for time worked or accrued vacation and employer payments to military reservists called to active duty, payments that make up the the difference between military pay and employee's pay prior to conscription.

Be careful lumping this stuff all under one umbrella. There are specifics and these tw examples cover most states but not all. Check with your states workers' comp folks to be sure.

__________________
"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006