Numbers make my head hurt

familytree

familytree

Location
Haddonfield, nj
Just finished my first sit down with my accountant for my own tree care company. My head still hurts

I gotta say, I give a lot of respect to anyone that has started their own business.

Selling drugs was so much easier.

That said, now that I'm legit I need to find a good Workmanship comp rate. Any ideas where to look? What are you paying?

My plan is simple. Become a contract climber full time for my bosses company (sub contractor) so that I can finally get paid on the books for my total salary. Then, hire on my future wife as my "secretary" so that I can add her to my newly formed medical insurance plan (have to have at least two employees for group rates. Now she is showing income on the books as well.

Being paid cash was nice....when I was 20. But now that I have the baby and am trying to buy a house I need to show proper income. My boss has complained already that he doesn't want to pay me on the books full time, full salary because it will jack his WC through the roof.

What do you guys think?
 
Re: Numbers make my heed hurt

He's making money from your efforts. Pay you on the books and tell him any cash payment he makes to you while your an employee you will declare. He'll then be on the hook for all the payroll burden AND any penalties levied by the IRS.

The WC argument is crap. He's willing to short change you if you're ever injured? Basically he's saying bend over and assume the position...
 
Re: Numbers make my heed hurt

family,

you mean workmans comp rate?

Here in Maryland, we start at 30% payroll. (for every $100 paid to employee, you pay $30)

But over the years, if you have no claims, you get experience discount.

I think I was at like 15 or 13% due to many years with no claims. Then switched to another company this year, they will be higher this first year, then lower than what I was paying.

Some advice, if some employee needs medical attention for something really minor (like a bee sting or dirt in eye), pay it out of pocket, do NOT claim it. It's not worth it.

Like I said, we in MD are 30%. But NJ is full of lawsuites and many people that take advantage how easy it is to get money out of sueing others, so your state is likely higher.

I heard California and Florida was was 100% !
 
Re: Numbers make my heed hurt

I concur with the above, most of all get away from your current employer.

If he is paying you under the table, or off the books, then you are at far more risk than you realize.

If you contract climb for him be darn sure you bill him sufficiently to cover yourself for your own WC. No sense in giving him more freebies.
 
Re: Numbers make my heed hurt

Wow!! You definitely need to be on the books full out bro!!!The fact is in NJ if you are a sole proprietor i do not believe you are required by law to have it on yourself!! that is at least the old law ,better double check me on that!! That being said laws and opinions vary state to state....If i were in your shoes i would call an insurance person or labor lawyer and get REAL and lawful advice!! That way YOU KNOW you are doing it properly and according to the law.....and oh by the way in NJ within 6 to 9 months you MUST pass the NJ licensed tree expert exam to do tree work legally in our State , or you may be under the employ of one or a licensened tree care operator . which is a company that has been in biz for 7 years and can prove thay have records of proper insurance and biz practices.Same as other trades like electricians etc.. just fyi
Good luck Daddy!!
 
Re: Numbers make my heed hurt

I talked to my accountant last night. He said as a sole proprietor my current general liability is good enough UNTIL I step onto a jobsite as a contracted climber. At that point, if I don't have workmans comp and if I was to get injured, the company employing me that fateful day is on the hook.

I will call my current insurance agent to get a quote for workmans comp.

Paul. I've been a registered tree care company for two years with my ISA cert. Do I need to follow suit with a nj tree expert cert as well?
 
Re: Numbers make my heed hurt

In NJ, If you hire a sub, to grind stumps for example, make sure they carry workers comp as well whether or not they have employees or work alone. If you pay them your carrier will include those payments as part of your payroll and jack your premium up accordingly. There are ways around this, like having the customer pay the sub directly, but I'm not sure if that method is free of complications in the event of a mishap. Best wishes in starting the 'family' business.
 
Re: Numbers make my heed hurt

[ QUOTE ]
My only thoughts are.... Get the HELL away from your current employer asap.

[/ QUOTE ]

I agree. And hearing other stories about your boss... seriously... do away with him and invest in yourself.
 
Re: Numbers make my heed hurt

once the tree expert law kicks in the isa cert will not cover you. Do not loose heart however because the isa test serves as a great primer for the lte exam!!! you will have a great head start because you have tested already!! the exam is usually in july ......get back to the books over the winter.
 
Re: Numbers make my heed hurt

Don't really know what the I.S.A. cert is going to do for you in NJ. Thats why I bit the bullet and took the C.T.E. exam which is mega difficult. You best take Steve's class.
Makes all the difference imo. Good luck with all that stuff family, it only gets better.
 
Re: Numbers make my heed hurt

Starts in Jan and is worth every penny.
Ask as many questions as possible.
Gets him jazzed up!
Seriously It Was The Difference.
 
Re: Numbers make my heed hurt

The next time I see him I will ask him the logistics.
Pm u with the info. May be a week or so tho. Last year the class started in Jan. Started to make plans in Nov. I will be interested in the outdoor portion anyhow. Can't every know too much.
 
Re: Numbers make my heed hurt

If you dont want to take the LTE test you can opt for the LTCO test it is less time and questions but limits the phases of treework you can preform(LTCO no cabling and braceing,not allowed to give hazared tree or general evaluations,no tree planting,no fert.,no lightening protection installation,no chemical application,no tree management during site planning and development)in short you can take trees down remove and stump grind and light pruning after you show the board you have years of training in the arboriculture industry.
 
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