Workers Comp & Sub Contractors

 
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Old 03-03-2013, 11:40 PM   #1
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Workers Comp & Sub Contractors


I know that workers comp for employees is calculated on a percentage of payroll. How is it calculated for subs?
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Old 03-04-2013, 02:21 AM   #2
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Re: Workers Comp & Sub Contractors


Why would you supply W/C for your subs?

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Old 03-04-2013, 07:50 AM   #3
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Re: Workers Comp & Sub Contractors


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I know that workers comp for employees is calculated on a percentage of payroll. How is it calculated for subs?
There is no calculation. All subs should carry their own workers comp insurance, and list your company as a certificate holder.
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Old 03-04-2013, 08:00 AM   #4
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Re: Workers Comp & Sub Contractors


If you choose to hire subs without WC it will be calculated based on the 1099. But as others have said why do it.
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Old 03-04-2013, 08:04 AM   #5
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Re: Workers Comp & Sub Contractors


If, when you get your work comp audit, you have no certificates of insurance for any subcontractors you will be charged the same percentage of payroll dollars as what you paid that particular subcontractor. I suggest getting certificates of insurance from all subcontractors before they start their work. If you have a subcontractor that you want to use and they do not have worker comp, at least have them break out the labor and materials. That way you only pay it on the labor not the materials and then deduct the amount from the labor, say 13% or whatever your rate is. Just negotiate it with that sub
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Old 03-04-2013, 11:05 AM   #6
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Re: Workers Comp & Sub Contractors


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If, when you get your work comp audit, you have no certificates of insurance for any subcontractors you will be charged the same percentage of payroll dollars as what you paid that particular subcontractor. I suggest getting certificates of insurance from all subcontractors before they start their work. If you have a subcontractor that you want to use and they do not have worker comp, at least have them break out the labor and materials. That way you only pay it on the labor not the materials and then deduct the amount from the labor, say 13% or whatever your rate is. Just negotiate it with that sub
Exactly. To add a few things;
The rate the insurance company will charge you is based on the type of sub work. (a roofer would be more than a flooring installer)

In our subcontracts, We have a requirement that all subs remain insured for the duration of the project. If our insurance company finds their covereage lapse as some point, we have the right to change them in excess or 20% or the actual cost of providing coverage plus any overhead costs.

Never hire uninsured subcontractors. Premium costs aside, You become liable for everything they do or can happen in the present and future. It's foolish to assume that risk.

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