Workman Comp
- Thread starter Tim Smith
- Start date
One Call Power
New member
Well we used to have (independant contractors) but now to be legal we went with the full employment package deal and it ran me $10,568.00 for just two employees. Needless to say, I had to cut one job and now its just the three of us. Two full time washers and 1 full time stain guy. They recommended adding myself but cant afford it. We became an S Corp two weeks ago and that has changed everything. Although it is the best setup tax wise, it sure cost, cost, cost......
Tim,
I don't think entering the insurance business is the answer. It is fraught with perils - for example: paper cuts; carpel tunnel syndrome; writer's cramp; overeating; too much coffee; obesity; danger from traffic (while making trips to the bank with your money); 'sore desk-elbow'; and computer eyestrain. All of this risk for a mere few thousand for writing your policy. Not.
Richard
I don't think entering the insurance business is the answer. It is fraught with perils - for example: paper cuts; carpel tunnel syndrome; writer's cramp; overeating; too much coffee; obesity; danger from traffic (while making trips to the bank with your money); 'sore desk-elbow'; and computer eyestrain. All of this risk for a mere few thousand for writing your policy. Not.
Richard
$17,360 does not include benefits. Works Comp is determine by payroll. My janitorial business has a $400,000.00+ payroll.
I pay approx. $84,000.00 a year for benefits (20 employees).
Liability is approx. $4,348.00
Thats over a $100,000.00 in insurance and benefits - not to mention social security that I have to pay. It makes me sick to my stomach.
I pay approx. $84,000.00 a year for benefits (20 employees).
Liability is approx. $4,348.00
Thats over a $100,000.00 in insurance and benefits - not to mention social security that I have to pay. It makes me sick to my stomach.
Tim,
You are half right. Work/comp premium is developed from payroll AND 'classification', with a fully-earned minimum premium for each classification. Often an agent will not take the time to reveal this important info in that it results in extra work and reduced commissions. With your hefty payroll it is possible you are overlooking large benefits from division of payroll. For example, have you any clerical employees? Rate for 'clerical' is mere pennies per hundred as opposed to several dollars/hundred. Ask your agent to offer payroll division. Keep in mind that one employee with dual classifications will be charged the higher classification for all payroll for that employee. Premium for general liability does not appear to be excessive. Hope this helps.
Richard
You are half right. Work/comp premium is developed from payroll AND 'classification', with a fully-earned minimum premium for each classification. Often an agent will not take the time to reveal this important info in that it results in extra work and reduced commissions. With your hefty payroll it is possible you are overlooking large benefits from division of payroll. For example, have you any clerical employees? Rate for 'clerical' is mere pennies per hundred as opposed to several dollars/hundred. Ask your agent to offer payroll division. Keep in mind that one employee with dual classifications will be charged the higher classification for all payroll for that employee. Premium for general liability does not appear to be excessive. Hope this helps.
Richard