Workers Comp (by GKARL [PA]) Jul 17, 2019 3:03 PM
Workers Comp (by Ken [NY]) Jul 17, 2019 3:50 PM
Workers Comp (by Richard [MI]) Jul 17, 2019 3:53 PM
Workers Comp (by Robert J [CA]) Jul 17, 2019 3:53 PM
Workers Comp (by Steve [MA]) Jul 17, 2019 4:31 PM
Workers Comp (by GKARL [PA]) Jul 17, 2019 5:04 PM
Workers Comp (by Debbie [VA]) Jul 17, 2019 7:18 PM
Workers Comp (by Ken [NY]) Jul 17, 2019 7:31 PM
Workers Comp (by razorback_tim [AR]) Jul 17, 2019 8:35 PM
Workers Comp (by RentsDue [MA]) Jul 17, 2019 11:03 PM
Workers Comp (by GKARL [PA]) Posted on: Jul 17, 2019 3:03 PM Message:
I have a couple of handymen that I'm going to put to work on extended projects and I was concerned about workers's comp and did some checking. Approximate payroll will be about $ 10,000 to $ 15,000. Usually, there's a worker's comp audit annually to confirm the payroll and premium amounts. Cost of the premium with the state insurance fund will be $ 2400 which would cover me for a year.
I think this is far cheaper than a lawsuit and would cover any itinerant workers I'd have over the next year. One of the guys said he got a quote for his own worker's comp at $ 500 which seems very low. I was going to pay the premium for him but the problem with that if it covers him for jobs other than mine not to mention that if he leaves, the insurance goes with him. Getting it myself eliminates that issue.
Thoughts and feedback please.
--64.121.xxx.xxx |
Workers Comp (by Ken [NY]) Posted on: Jul 17, 2019 3:50 PM Message:
Couple thoughts,i used paychex when I had employees and when I used them there were no audits,used them for several years.Also to avoid audits being difficult you may want to consider forming a corp or llc that will be who the employees work for,then you put the money into that corp as pay to that corp for working on your houses then if you get audited they only go through the corp books that they work for which is easy and quick --72.231.xxx.xxx |
Workers Comp (by Richard [MI]) Posted on: Jul 17, 2019 3:53 PM Message:
You might be able to hire them through a temp agency like Labor Ready. The agency would cover comp, payroll, reporting, etc. Its a balancing act. Also, the agency limits them as to what they can do, so check that part too. No sense if they can't go on a ladder, a roof, etc. --172.222.xx.x |
Workers Comp (by Robert J [CA]) Posted on: Jul 17, 2019 3:53 PM Message:
I am a landlord and contractor in California. The largest Workers Comp company here, State Fund, is owned by the State. So the Insurance Commissioner told all Insurance Companies NOT to Offer Workers Comp policy's as part of their fire policy -- only can be done for single family owner occupied properties. Why, So State Fund can get the business.
I started to get quotes and the rates were sky high. So I became "Self Insured". All I needed was a $250,000 reserve. I set up a trust account and away I went. That's until the State caught me. They wanted to nail me to the cross but I fought them tooth and nail. The court ruled the $250,000 had to be held by the State to be Self Insured.
So I have my bank set up a trust account and purchased $250,000 worth of State Bonds. The State had the money and my account was frozen until I dropped my self insured status.
The State caught me again and sued. I proved the money was held by the State!. They didn't care they wanted $75,000 in premiums or hold my $250,000. SO far the State hasn't returned other Self Insured Landlord/contractors without a suit and judgement against the State.
In other works this is a game to them. So I said goodbye to my 11 employee's and 3 resident managers... --47.156.xx.xx |
Workers Comp (by Steve [MA]) Posted on: Jul 17, 2019 4:31 PM Message:
I think you might be mistaken thinking it will only cost you $2,400.00 for a year. I believe that that is the premium they want in order to write your policy. When they do their audit they will base your actual premium on the dollars paid out to each of your workers. The rates are also based on the category of work performed. For instance clerical work is very inexpensive per 100 & pitched roofing is extremely expensive per 100.
In addition to the WC you will also be responsible for Federal & state unemployment, FICA and their normal income tax withholding. For the little bit you are going to use them you might look into either employee leasing or hiring them thru a temp agency.
--96.237.xx.xx |
Workers Comp (by GKARL [PA]) Posted on: Jul 17, 2019 5:04 PM Message:
Ken-you must have had WC tied into Paychex. No audit was needed as Paychex handshakes with the insurer and gives them the payroll information. I'm 1099ing these guys but you're having me rethink. It might cost me a bit more, but I may set up payroll through Intuit and combine WC with that service. --64.121.xxx.xxx |
Workers Comp (by Debbie [VA]) Posted on: Jul 17, 2019 7:18 PM Message:
BE very careful 1099 these workers and then covering them with workers comp. Makes it very easy for the Fed and State to reclassify them as an employee. If this happens you will be on the hook for all the taxes you were to withhold along with SUTA and FUTA --67.211.xx.xx |
Workers Comp (by Ken [NY]) Posted on: Jul 17, 2019 7:31 PM Message:
GKARL,initially I played the game and called them contractors,i got caught with 7 guys like that and my accountant got me out of it for $700 fine and I had to have them on the books in a week,that is when I started with paychex,several years later a female employee got hurt and was covered 100%,thankfully because it cost my insurance company well over $100000.I use legit contractors now but if I go back to employees they will be on the books --72.231.xxx.xxx |
Workers Comp (by razorback_tim [AR]) Posted on: Jul 17, 2019 8:35 PM Message:
Is the state fund your only option?
In my area that's what most brokers quote because it's the easiest. If you find a broker that specializes in contractors they may have other options that are cheaper than the state fund. I'm saving about 25% a year by not being in the state fund. --40.140.xx.xxx |
Workers Comp (by RentsDue [MA]) Posted on: Jul 17, 2019 11:03 PM Message:
DO NOT put them through a temp agency. They can , and will, file a claim against you. --71.10.xxx.xxx |
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