What's workmans comp gonna cost me?

[dirk martin]

Right now I'm a one man shop. I cut and sell wood of all shapes and sizes, over the web, all over the world.
I use a table saw, bandsaw, chop saw, and wide belt sander, daily, to fill my orders.

When I cannot handle orders, I outsource work to my nephew, in another state. He has a full featured shop, and can handle orders that I feed him easily. He ships them from his location, also, after I give him the address. Works well.

I don't believe I need Workmans Comp insurance on my nephew, since I use him as a subcontractor. He covers himself, with his own insurance. The rate he charges me, reflects that.

Orders are still too heavy for the two of us.
So, I need to get a bigger shop, and hire an employee or two.
I understand WC insurance will be a percentage of their wages.
For this type of work, in my shop, what percentage can I expect to pay?

[Leo Graywacz]

Best I could do for you.

https://classcodes.com/lookup/worker...ion-code-2802/

[Nicholas Lawrence]

Best thing to do is call a couple of insurance agents and get some quotes.

[kevin nee]

Workers Comp is an important tool for everyones protection. The law here in Massachusetts. Being fully insured will open a lot of doors. It will just become part of operating expense. I used to call the Tax man and the insurance company my senior partners. There was still some left for me. Good luck, Kevin

[dirk martin]

Thanks for the input everyone. This helps.

Now, I'd like to throw in a twist here, with the following:

When I hit my thumb with the hammer, I blame myself.
When sawdust flies into my eyes, I get angry at myself for being so stupid, and grab my safety glasses.
When I see that board starting to lift on the table saw, I tighten down the hold-down dogs.
My son had a board kick back on a table saw he was using at a neighbors shop a few years ago. 4 stitches. Nothing serious.

In any of these incidents, why would I blame the person whom's shop I was in?
I guess what I'm wondering is, if I pay for my own health insurance, why wouldn't I pay for my own workmans comp?...or some other sort of injury insurance?
Is this all because our society has become so litigious? When billy cuts off his thumb in my shop, is the jury really gonna blame me?
What am I missing?

And now, as a side-light....
My brother had to tear down an old barn. It was old and rickety.
He wasn't about to hire someone else to do it, and he's too old to do it himself.
But, he lives in an Amish community.
The Amish lined up for the work, to rip it down....at a very reasonable hourly rate.
If they get hurt, working for you, they'd never even consider suing you.
To them, it's common sense. Their mistake, their fault....and I'd feel the same way, if I was working for any one of you reading this.

So, again...has most of the world lost their senses, or what am I missing?

[Rich Engelhardt]

So, again...has most of the world lost their senses, or what am I missing?

You dance with the devil when you hire out work to be done by people that don't have - insurance - workman's comp - proper certifications and licences - proper permits......

When billy cuts off his thumb in my shop, is the jury really gonna blame me?

Yes - you'll probably be on the list, along with the saw manufacturer and anyone else his attorney can think of.

[Mark Bolton]

Buy QuickBooks and set up their workman's comp program through a p inelego and you'll never look back it's a pay as you go plan you pay for whatever hours your employees work for that given week you don't pay an annual premium and you're done it's the easiest way to deal with workman's comp.

[Jerome Stanek]

Buy QuickBooks and set up their workman's comp program through a p inelego and you'll never look back it's a pay as you go plan you pay for whatever hours your employees work for that given week you don't pay an annual premium and you're done it's the easiest way to deal with workman's comp.

Workers comp is different for each state

[Kevin Jenness]

Dirk,

When you hire someone to work in your shop it is your responsibility to provide safe working conditions. If they get hurt, the fault may be yours, may be theirs, may be a mix. You can sort it out in a nice expensive civil suit that enriches the lawyers for both parties, or you can protect yourself from litigation by carrying workmen's compensation insurance. Like it or not, that's the way the world works. If you don't want to play, keep using legitimate subcontractors.

The good news is, if you keep your shop up to scratch with proper guarding, training, documentation, etc. and avoid accidents by making it easy for your employees to work safely (and insisting on it) your rates will be lower than otherwise. Good luck.

[Wade Lippman]

Consider charging a bit more to reduce your orders and increase your profit. Hiring someone can be a nightmare.

[Bradley Gray]

Consider charging a bit more to reduce your orders and increase your profit. Hiring someone can be a nightmare.

Good advice. A good start as you will need to charge more anyway if you hire help.

[Leo Graywacz]

Just remember you, yourself cannot claim something on WC. It is only for the employee(s). Our state at one time was going to impose a law that mandated all business needed WC, even single owners. But the rule stated that single owners couldn't collect and would only be adding to the pool of money. That floated like a bag of rocks.

And we all know that the money from those taxes would end up in other places, being borrowed from programs that have excess money.

[jack duren]

You need to talk to the right people for your state. Here and there varies. I was in the same position about 10 years ago. Too much for me and on the edge of hiring a helper. The crash got me and didn't have to deal with it....

It's a big step...

[Rich Engelhardt]

I believe you also need to figure in things like withholding taxes & Medicare once you open the WC Pandora's box.

[Leo Graywacz]

That has nothing to do with WC and everything to do with having an employee.