I know this has been discussed in other places, but I am bringing it up again.
Does anyone have a good idea on how to deal with worker's comp? I know the contractor "loophole", but what I'm mainly thinking about is that it may be a good idea to have. It's just so stinking expensive. Is there any lower cost way of doing it? I am mostly thinking about this for logging, but maybe also for a sawmill, which may be cheaper.
I've been thinking about this for a while, and from different angles. In Virginia (where I live), you are not required to have Worker's comp until you hire your 3rd employee. But technically I'm still liable if I have 1 or 2, and the wrong accident could put me out of business. Stay small and don't get it? Get it and hope it works out? Any thoughts or ideas would be appreciated.
I certainly wouldn't do it for personal insurance. I looked into it for myself for wage loss and what it covered for medical. For what you pay.... it was a total joke. :D
I became convinced that it was only for the benefit of an employee and so Uncle Sam could make a little more.
A guy I work with has a wage loss insurance and twice he tried to collect on it for totally legitimate circumstances and it was like trying to get blood out of a turnip. They told him he would have to wait a period of (3 months I think, don't quote me on it, but it was long) before they would consider wage replacement at a reduced rate.
Most people would be sunk by then.
I looked into it. 8 grand it would cost. Ain't worth it for just me. It was for employees anyhow. I work alone. Haven't looked for any other sources tho. Good luck !
Here in NH, worker's comp is expensive, but you can split rates. For example, if your helper does mechanic work on a rainy day, you don't have to pay his comp at the logging rate that day. If part of his logging day involves caring for the horses, the comp rate for that time will be considerably less than the logging rate. But you've got to keep signed time sheets. Also you pay up front for the comp at the logging rate, I think it's two quarters, and then they will rebate after your audit.
I have my own theory why comp is so high, Its because to many people have taken advantage of the system!! We all know people that have got big settlements and do more things then we do. I don't want to ramble about this so I wont.
I am with you on this one wood hauler its pretty much a fact. We asked this question many years back and the only sane answer was that in logging when there was a mishap it was usually pretty bad an lots of treatment/down time: compared to say a salesman, office clerk etc. For the original poster all I can add is there are some training programs that drastically cut the cost of it for many professions. BUT I do not want to get going on the programs >:( Sometimes it is easier to hire a contractor to do a job than an employee.
There is a way around the up front cost . That is to hire from a temp agency . they will hire the man and he works for you . They pay all the comp and taxes . He gets the same pay you pay about 15% over all the costs . No payroll just write them a check once a week .
Very good idea gearbox!!! BUT not sure they will do it for logging and not sure they pay workers comp. Further review may be required here :P I am sure it varies state by state. I have seen it used for odd seasonal jobs like road flagger, holiday shipping season etc.
Temp agencies up here won't touch jobs on the primary harvesting end of the forest products industry. I looked into it a few years ago. The comp rates, liability etc associated with harvesting timber are more than they want to deal with.
TO bad I used them when I had my cat and backhoe and it worked out well . The % was a lot less then .