I hired my first employee this year and it's my first year paying worker's comp. The insurance company put us into the highest class code they could - 5645 Carpentry and Siding - based on doing some framing and a few basements a year. My premium up front is about $8,000 for one guy! I don't do any siding and most of what I do falls under 5437 Installation of Cabinets or Interior Trim. I was told that I could do separation of payroll and get money back at the audit. This requires me keeping records and assigning the amount I pay my employee to different class codes. I also do jobs that are ceramic tile installation only, sheetrock only, and even lawn maintenance. My question is, exactly HOW do I keep the records for this separation of payroll. I've read many instances of auditors denying it and lumping everything into the higher category during the audit because it wasn't done right. I've asked my agent but he's useless. I even tried calling the insurance company and they were no help.
Do I take the weekly check amount and divide it by hours worked/money earned in each different class code? Should I include a description of exactly what they did or just use the class codes? Can I make my own chart? Should I give daily or weekly descriptions of work done broken down my hour and pay? I'd love to hear from anyone who currently does this and how you do it. Thanks.
Also, what code do kitchen and bathroom remodels fall under? I've been told that it falls under the higher 5645 code, but then I read if your not framing, but using existing walls and just replacing cabinets plus installing new tile, then it's a lower code. Still, agents are telling me it falls under the higher code, and I can't see why if nothing structural is being done.
Do I take the weekly check amount and divide it by hours worked/money earned in each different class code? Should I include a description of exactly what they did or just use the class codes? Can I make my own chart? Should I give daily or weekly descriptions of work done broken down my hour and pay? I'd love to hear from anyone who currently does this and how you do it. Thanks.
Also, what code do kitchen and bathroom remodels fall under? I've been told that it falls under the higher 5645 code, but then I read if your not framing, but using existing walls and just replacing cabinets plus installing new tile, then it's a lower code. Still, agents are telling me it falls under the higher code, and I can't see why if nothing structural is being done.