workers comp ins. - Contractor Talk - Professional Construction and Remodeling Forum

jayybird77 · 02-11-2007, 08:48 AM

Can anyone explain workers comp insurance premiums to me? I am in my first year and need more info about this. I do most of my work for a design company that withholds .45% of my check or any sub without it.

Thanks, Jay

tcleve4911 · 02-11-2007, 08:52 AM

Do you have employees?

jayybird77 · 02-11-2007, 08:57 AM

Yes, three as of now, part time help for the busy season. Resort beach town and all HO are getting ready for rental season.

tcleve4911 · 02-11-2007, 09:07 AM

If they are truly employees, most states require that you carry WC. Most give you the option to waive in on yourself, but your employees must be covered.
The co. you're working for is covering their liability, but I would be cautious. In the event of an accident, is that $ they are withholding enough to pay long term medical? Who gets that money? Too many unknowns. You both are playing a dangerous game with other people's lives.

jayybird77 · 02-11-2007, 09:23 AM

So any idea what I should be paying for workers comp? I got one quote for one employee and payroll of $24000 (the lowest) for $5500 per year. All I want to know is if this sounds right to you guys? I will save money by going with this quote vs. the .45% being withheld per check/job over a year.

The help I have now is for a few weeks but I will have one employee full time with me year round.

tcleve4911 · 02-11-2007, 09:30 AM

Unfortunatly, WC is expensive. It's THE largest overhead you will have to deal with. The prices you posted don't seem off. Our trade is one of the highest rates in the industry. It's the cost of doing real business in our country so make sure you cover it in your pricing.

jayybird77 · 02-11-2007, 09:37 AM

Thanks for the info Tcleve, I will be getting a few more qoutes before deciding on one.

MakDeco · 02-11-2007, 10:14 AM

Quote:

Originally Posted by tcleve4911

Unfortunatly, WC is expensive. It's THE largest overhead you will have to deal with. The prices you posted don't seem off. Our trade is one of the highest rates in the industry. It's the cost of doing real business in our country so make sure you cover it in your pricing.

Painters rates for WC is lower then carpenters , roofer etc.... also there are varibles that effect such as if you spray, how high you would be working outside. I think that less than 3 stories is cheaper than more etc..

tcleve4911 · 02-11-2007, 12:35 PM

The pay scale is lower, too. Rates are based on wages.

DeanV · 02-11-2007, 01:52 PM

I pay about 13% of my workers wages for WC. this is more than the carpenters I work with. I do not do the high stuff either.

jamesimprove · 02-11-2007, 02:05 PM

If you are injured working on a residential job because the homeowner did a lousy job of building step down his retaining wall which you had to continue to go up and down to perform the work you were hired to do would you run it through workers comp so that they will pay your medical bills and if your seriously injured or disabled what are they going to pay for the time you miss recovering.

AAPaint · 02-11-2007, 02:47 PM

My workers comp alone is 18%. Total paid out to payroll for each employee comes close to 28% when all is said and done. That means a $10/hr guy for example would cost me $12.80 per hour.

premierpainter · 02-11-2007, 03:55 PM

Quote:

Originally Posted by AAPaint

My workers comp alone is 18%. Total paid out to payroll for each employee comes close to 28% when all is said and done. That means a $10/hr guy for example would cost me $12.80 per hour.

What have you done to deserve that!! 18%, dear god, I thought that my 12.49% was too high. 28% total is including your payroll taxes, right?

AAPaint · 02-11-2007, 04:06 PM

Yup, 28% with payroll taxes and all. What can I say? Florida is not easy no the w/c. I think I got stiffed a little because I exempted myself, and didn't have any w/c until recently. I guess if you get it within your first six months of business it's cheaper. What a ripoff.

All that and people wonder why my prices are high....