Workman's Comp on "as needed Helpers" vs Employees

[Serf Life]

Comp exemption is available to non construction industries with max 3 employees. If you file under class code 0106, tree pruning and spraying, you can get the exemption. Just say you do mostly pruning and not so much removal. It's a loophole, you are NOT protected.

This is an on paper, signed by the subcontractor exemption? Diff than release of liability form?

 

[ATH]

My general liability has this scheme.. its based on gross payroll with caps on each employee and owner. So in price I'm better off working longer hours with less people vs fewer hours and more part timers...

never thought about it that way...but yeah, that is certainly the case.

 

[owScott]

If your LLC is a partnership, the owners should not need to carry workers comp. for themselves, at least here in PA they would not have to have it. The partners are treated the same way as any other sole owner would be.

Here in Co owners arent required to have workmans comp, but I have had some large property managment and construction companies want me to cover myself or not be on the jobsite. Basically their lawyers want overkill protection. Its not cost effective for me to pay workmans comp on myself as I have other options if I get hurt. I have looked into it and its crazy expensive, I just bow out of those jobs.

 

[ATH]

.....

Comp rates, if you can get it, are changed yearly and depend on your track record. Mine is under 9 cents on the dollar of payroll.

what is your classification code?

BWC gave us 3 to use:
0042 when we are planting trees
0106 when anybody leaves the ground
9102 for small tree pruning when there isn't overhead work/nobody is in a lift of climbing

the 0106 is something like 26%, but down to about 14% with group rating that we qualify for with safety record. the other 2 are something like 2.5% and 5%. I always use the highest rated task for the job we are on even if we switch tasks to a lower rated one. Once we leave the jobsite, if the next job is different, than we code that appropriately.

Of course, then BWC gave covid-relief refunds of 100% of 2019 premiums paid. Twice. Then a 3rd refund that I think was 100% of what was paid in 2018. Obviously there were some conditions that put them in a strong financial situation (markets were VERY strong so investment returns helped a lot, nobody was working for a couple of months means no accidents to pay for)...but I thought "if they can essentially send back 3 full years of income, they are probably taking too much from me in the first place!" Not that I didn't appreciate (and use) the funds...but I'd rather lower operating expenses. [/rant]

 

[ATH]

Here in Co owners arent required to have workmans comp, but I have had some large property managment and construction companies want me to cover myself or not be on the jobsite. Basically their lawyers want overkill protection. Its not cost effective for me to pay workmans comp on myself as I have other options if I get hurt. I have looked into it and its crazy expensive, I just bow out of those jobs.

Double check that. I have worked with some subcontractors who only employ family. We use the language along the lines of "meet state requirements for worker's compensation". Since they aren't required to cover themselves, they still have met that requirement.

Second suggestion: bid those high enough to cover the cost. Always a good deal if you can find somebody else to pay for an extra layer of insurance.

 

[owScott]

Double check that. I have worked with some subcontractors who only employ family. We use the language along the lines of "meet state requirements for worker's compensation". Since they aren't required to cover themselves, they still have met that requirement.

Second suggestion: bid those high enough to cover the cost. Always a good deal if you can find somebody else to pay for an extra layer of insurance.

I have looked into the cost. Its so expensive based on my salary it would put my bid out of the running. Just doubled checked, says If you own at least 10% of the business you can opt out workmans comp I think unemployment insurance is a better option for business owners.

 

[ATH]

I have looked into the cost. Its so expensive based on my salary it would put my bid out of the running. Just doubled checked, says If you own at least 10% of the business you can opt out workmans comp I think unemployment insurance is a better option for business owners.

Do they require you to pay on your full salary if you cover yourself? See my above note: in Ohio, regardless of owner salary, they only need to pay on $36K. I don't pay on myself because I have confirmed I am covered with our family's health coverage if I am injured working for the company I own...but I think about that sometimes. It is relatively "cheap" health insurance.

 

[Knotguilty]

This is an on paper, signed by the subcontractor exemption? Diff than release of liability form?

The state database will list the company and if they are covered or exempt. Florida database is available online. You want a release of liability form on top of proof of coverage or exemption for sub contractors. You want this if you sub your stumps, from your crane operator, or a sub climber.