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Discussion Starter · #1 · (Edited)
Hello all! I'm in Southern New Jersey and recently formed a new construction business. I've read some posts here and found them informative and interesting and I look forward to posting and sharing ideas and thoughts. I'm not new in the business world and have another computer company that I have owned and operated for years, but quite new to operating a construction business. I do have a 25% partner who knows the construction trade, while I am the business/marketing/finance part of the equation so it should be a great match as we have known each other for years. However, the construction company is an S Corp, so we have an exit strategy should we choose to sell shares and his employment is at will but we communicate well and he knows I am honest to the core and would be fair and never cheat him, our employees, homeowner or anyone else.

I’m in the process of obtaining workman’s compensation insurance in New Jersey and this seems to be a mammoth task in my area as agents don’t want to sign us up, conflicting information from insurance agents, et cetera. I’ve had business liability rates from $1,600 to $5,000 and workman’s compensation rates from 9% to 27%, even saying I had to be classified as a light carpenter as I am not ever going to pick up a hammer. I’m attempting to ascertain if in fact it would be more advantageous from purely a workman’s compensation insurance perspective to sub out all work or hire employees. I’m anticipating a $1M+ gross for year one minimum with a visible payroll of $200K+ (just as a reasonable hip shot) doing residential work like additions, decks, kitchens, baths and the like. I have some experience in this from my childhood years working with my dad for 10 years or so, but my knowledge is rough and rudimentary at best and I am not personally going to be working in the field other than checking on organizational design and such. Any ideas on this issue from people in NJ? If we get employees, do we put a few in light carpentry class for general work as one agent suggested or what? I’d really appreciate if anyone would take the time that is in NJ to call me if you can discuss specifics @ 856-486-7888 with me. Thanks in advance for any and all thoughts from people in the area! Gary :Thumbs:
 

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nj w/c is figured based on the highest rate classification an employee is exposed to, even if say 90% of your time is spent in an office offsite the 10% time you spend onsite requires that you be put into a construction classification. Also each employee can only be in one classification,the w/c rules do not allow spliting of an individual employees payroll. Organizing your company as a an llc or partnership would exempt the owners from w/c but you still have option to elect w/c coverage.
 
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Discussion Starter · #3 ·
Thank you!

bergenbldr said:
nj w/c is figured based on the highest rate classification an employee is exposed to, even if say 90% of your time is spent in an office offsite the 10% time you spend onsite requires that you be put into a construction classification. Also each employee can only be in one classification,the w/c rules do not allow spliting of an individual employees payroll. Organizing your company as a an llc or partnership would exempt the owners from w/c but you still have option to elect w/c coverage.
Got you there, I have the basics pretty tight and already made a lot of phone calls but I need a few specific questions answered if you are in NJ. I'm personally into an administrative class as is my Director of Operations, but my questions are more involved and would appreciate conversing with someone in NJ via phone is possible :) Thank you for taking the time to post a reply however.
 

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W.C. for carpentry is running me around 12% of payroll ,the 27% rate sounds like a rate for structural steel erection or roofing .
 
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