# Worker's Comp question



## Inner10 (Mar 12, 2009)

Easy Gibson said:


> Year old bump.
> 
> I just had this happen yesterday. Finished a job subbing and was told that money would have to be withheld. I didn't realize that I would need WC for subcontracting situations. I had asked about it when getting my GL and I was told that if it's just me I didn't need it. I'm sure it was mentioned to me that I would need WC for working with GCs, but there were a million terms and conditions mentioned in that conversation that I didn't understand.
> 
> ...


7% on gross is criminal.


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## Easy Gibson (Dec 3, 2010)

Inner10 said:


> 7% on gross is criminal.


I must have lived in NJ too long, I was actually pretty pumped at how low that is!


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## dsconstructs (Jul 20, 2010)

Easy Gibson said:


> I must have lived in NJ too long, I was actually pretty pumped at how low that is!


Would love to see 7% here also


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## Easy Gibson (Dec 3, 2010)

That's really just for flooring/light carpentry stuff like I was doing. Roofing/framing is higher. Don't have an exact number though. I remember my old employer telling me he paid 16% as a GC.


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## GCTony (Oct 26, 2012)

In VA the Commonwealth does not require a sole prop with no employees to have WC. Our insurance company does require everyone to have WC as does every client we work for.

Our subcontract states WC is required. "The Contractor shall not make any payment to the subcontractor until proper evidence of Insurance is received. In the event the subcontractor performs any portion of the , work without the required insurance, the Contractor shall deduct the greater of twenty five percent of the suncontract sum or the value of the insurance premium as determined by the Contractors insurance carrier." This was put in our first year in business when I got hit for $8000.00 for an sole prop DW sub without WC.

When our insurance company does our audit and they find an uninsured sub, they assume the amount paid was all labor unless the invoice shows a material and labor breakout.

IMO, ANYONE that doesn't carry WC is penny wise pound foolish. If you get hurt at work, how are those med bills going to get paid? Many health plans won't cover a work related accident.


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## AlbacoreShuffle (Aug 26, 2011)

_I'm a sole proprietor and one man shop in Idaho._
_I am not required to have workers comp, but I do have a ghost policy that cost me $300 a year._
_It does not cover me as the owner, but if i use casual labor now and then they would be covered if an injury happened._
_Better save than sorry._


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## Burns-Built (May 8, 2009)

I was a SP until recently i Incorporated. I just sat down with Insurance guy today to set up a WC policy for a helper for myself. I don't want to sub help, I want to take care of guys that will work for me. In PA as far as i know I cannot carry a WC policy on myself, but havce to carry it on employees. It sounded like 11% was the number for general carpentry/remodeling. I figure ill give a policy a go for a while and see how it works out.


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## GCTony (Oct 26, 2012)

Burns-Built said:


> I was a SP until recently i Incorporated. I just sat down with Insurance guy today to set up a WC policy for a helper for myself. I don't want to sub help, I want to take care of guys that will work for me. * In PA as far as i know I cannot carry a WC policy on myself, but havce to carry it on employees.* It sounded like 11% was the number for general carpentry/remodeling. I figure ill give a policy a go for a while and see how it works out.


That doesn't sound right at all, the "cannot carry WC on myself" Assuming you are an S Corp, you are an employee of the company and also a share holder. Someone like you whose business depends on you doing the work....You absolutly need to have some type of protecting for injury on a job. If you ever get seriously hurt, you could end up losing everything. You may want to get a second opinion for an agent.


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## eastend (Jan 24, 2006)

In NY, WC premiums are figured as a percentage of payroll. But, I don't understand why they include paid vacation, paid holidays, and paid personal/sick days. During those times, a worker couldn't hurt himself on the job since he's not working. Shouldn't the eligible payroll be reduced by those amounts?


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## Inner10 (Mar 12, 2009)

eastend said:


> In NY, WC premiums are figured as a percentage of payroll. But, I don't understand why they include paid vacation, paid holidays, and paid personal/sick days. During those times, a worker couldn't hurt himself on the job since he's not working. Shouldn't the eligible payroll be reduced by those amounts?


Same in Canada. For sole proprietors it's a percent of labour.


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## Burns-Built (May 8, 2009)

GCTony said:


> That doesn't sound right at all, the "cannot carry WC on myself" Assuming you are an S Corp, you are an employee of the company and also a share holder. Someone like you whose business depends on you doing the work....You absolutly need to have some type of protecting for injury on a job. If you ever get seriously hurt, you could end up losing everything. You may want to get a second opinion for an agent.


I called to check on this today, you are correct, as an officer of the Corp. I can have wc or be excluded, I am going to do it, not excited about forking over more money but hey. Thanks for setting me straight.


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## blacktop (Oct 28, 2012)

GCTony said:


> In VA the Commonwealth does not require a sole prop with no employees to have WC. Our insurance company does require everyone to have WC as does every client we work for.
> 
> Our subcontract states WC is required. "The Contractor shall not make any payment to the subcontractor until proper evidence of Insurance is received. In the event the subcontractor performs any portion of the , work without the required insurance, the Contractor shall deduct the greater of twenty five percent of the suncontract sum or the value of the insurance premium as determined by the Contractors insurance carrier." This was put in our first year in business when I got hit for $8000.00 for an sole prop DW sub without WC.
> 
> ...



Anyone working for me Is Insured under comp. If.. _ myself get hurt on the job ..I'll crawl home and say I fell off the roof! WC is a joke!
There not gonna pay up till YOU lawyer up! 
I have health ins...I have WC . If I get hurt on the job Those two will start pointing fingers. you pay!! No,, you pay!!  It's a racket!
I've been in the trade for nearly 28 years ,,carried comp for the last 25..Never made a claim[knock] But I've seen punks collect $25.000 - $40.000 checks over a creck in there neck ... Tripping over a ladder ..etc.. Then go buy a new Harley and ride like the wind!!!!

My body Is so fu#ked up from drywall I could go on disability Tomorrow !! 
They pay out when it makes no sense at all!! But When the Real working man gets hurt....He's screwed!_


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## Burns-Built (May 8, 2009)

So I got a comp quote, as an officer of the company I have the choice to be excluded or included in the wc policy. Accountant told me don't bother they would never pay because I'm owner. So if I hire one guy it will cost me 20 percent, plus another 15 in taxes so in addition to his wages that is another 35 percent on top. Yikes. I think it would be easier to have disability and stay a one man show. I was honest and put 5 percent roofing on my application, as we do do some roofs. What do you guys think, to these numbers sound right?


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## kiteman (Apr 18, 2012)

I think the taxes are 7.65% Fed, plus unemployment.


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## mk5065 (May 25, 2009)

upndnglo said:


> Just to clarify, the GC knew before the job started that we had no wc. I DO know what "do you have insurance" means, and I sent him a certificate of insurance before the job ever started, which clearly showed only commercial liability. He acknowledged that he knew we didn't carry worker's comp. That was his opportunity to tell my husband he couldn't hire a sub with no wc or to tell him he would be deducting money at the end of the job. I just think he was unethical of him to wait till the work was done to do this. And in NJ a sole proprietor is not required to carry wc. My husband almost never works for general contractors. This was a learning experience.


It seems like maybe he didn't realize ahead of time. He should have called your husband and worked something out. But you are mistaken. You are not required to have comp as a sole proprietor (1 man band ) but if you work for a g.c. when they get audited for insurance ( my audits are yearly) the g.c. has to show your comp policy or cover the comp for you base on the money he payed you. The kicker is if the check was for $4000 with $2000 material they will make you pay on the $4000. It all depends on your class code but mine is almost $19/ $100 I pay out. If you are going to work then get comp.


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