Workers Comp For GC And Framers

415moto

Guys, what range are you guys in for workers comp?

My workers comp as a GC with a handful of employees is hovering at 29%, up from last year a bit. No claims, ever. We do alot of work, on roofs, under houses, touch electric, pipes, etc.

Some GCs I know just label themselves as framers to cut down cost, but looks like they are at around 25% of payroll, so thats relative eh.

What range are other GCs or Framers at? I shopped around, but its hard getting quotes and time consuming. What do other trades pay in the way of Workers Comp? Roofers are the most expensive, thats what Ive always heard...but I mean we're at 29%, come on!

thom

That's about par here.

tnt specialty

The rates are set by particular state.; There's no mystery.

Take roofers for example; A couple years ago Calif.'s was right at 100%; Colorado's was aprx. 20%.

Hamburgjl

Most state as mentioned set their own rates which vary by trade. Here the base rate is about 16% for carpentry and 45% for roofing. Your state may let you keep track of payroll according to the trade that is done, its a pain to keep the records like that but can save you a ton in premiums. Beware that if you do many things including roofing, you will be audited later at the roofing rate for all the labor done.

And then there is what they call "experience modification" (mod) where they adjust your rates up or down according to your losses or lack of each year. One year we had a 8% discount for our good experience, the next year after one of our guys became "permanently disabled" lifting a toilet, our mod went up to the standrard rate PLUS 29%.! It took 3 years to have that go away and in the meantime we paid out an extra 50K in premiums.

If you do 99 % siding and only a little roofing, it would be smart to find a way to do 100% siding if you get my drift.

Talk to your agent about classifying each days labor.

There is a big market out there for a consultant to advise GC's on Comp. Wish I knew one.

__________________
The superior man understands what is right; the inferior man understands what will sell. Confucius
By working faithfully eight hours a day you may get to be boss and work twelve hours a day. Robert Frost

Susan Betz

This is one of the main reasons we use a leasing company: their certificate.

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Fences of Distinction, Ocala, FL
http://www.fencesofdistinction.com

Pearce Services

If you use Quickbooks, you can do this automatically each time you do payroll. As hours are entered, you assign the correct labor code, and when required for audits, you just print a report, and your audit is nearly completed.

ApgarNJ

Here in NJ it keeps going up for carpentry, which is what i'm under, and it's at 14% i know that tile installer is like 7%.

I got audited this year like always and I had three subs that didn't have work comp on the ins cert. so i ended having to pay more than my normal policy.
the best thing to do is to write breakdown the labor and material. many subs don't do that, but it can save you a lot if 50% or more is material. otherwise they just factor 100% of the subs work as labor.

i hate paying 14%, i can't imagine you guys out there paying close to 30% or more. how do they expect anyone to make money? that's like keeping every 20 cents off a dollar if you factor in SS, fed, and state taxes, along with all the other smaller crap you pay.

tnt specialty

WC is a cost of doing business.......Unless of course one cheats....

ApgarNJ

i know it's the cost of doing business, but the rates are outrageous
i haven't covered myself personally because i'm the sole income for my family and we simply can't afford to pay another 14% to insurance. my healthcare is already 1200 a month. that;s like a second mortgage it's to the point where i have to charge a hundred bucks an hour just for myself, and charge the customer 4-5 times what i pay my employees just to over all the insurance and taxes. WC is just another stupid thing that we shouldnt be forced to have on ourselves as the owner of an LLC.

Home Serve

Susan: I'm not sure what you mean when you say "use a leasing company". Can you clarify?
Thanks
Dave

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Missouri Remodeling Company with services for Replacement Windows Vinyl Siding and Entry Doors

Susan Betz

We pay a company (in our case, Southeast Personnel Leasing at www.southeastpersonnel.com). They employ our workers, and we pay them for the workers. In reality, we hire and fire, but the leasing company does all the paperwork, including taxes, payroll, WC, etc. We pay a fee but it's not crazy, less than we'd pay a bookkeeper.

__________________
Fences of Distinction, Ocala, FL
http://www.fencesofdistinction.com

tnt specialty

I didn't think you could buy WC for yourself.

Why would someone want to? Especially if you have health ins.

I believe there's all kninds of income protection insurance you can buy out there, which would be much cheaper than WC.