WARNING READ THIS! GENERAL CONTRACTORS!

THIS IS HOW WORK COMP COMPANIES OPERATE….

IF YOU HAVE EMPLOYEES THAT DO MULTIPLE TASKS ON THE JOBSITE, YOU NEED TO ACCOUNT FOR THEIR DAY BY SHOWING HOW MANY HOURS IN EACH TASK – TIME CARDS/TIME SHEETS WORK WELL. OTHERWISE AT AUDIT ALL THEIR PAYROLL WILL GO INTO THE HIGHEST RATED CODE!

IF YOU, THE OWNER, HAVE NOT SIGNED A WORK COMP REJECTION FORM (AND YOU ARE NOT A SOLE PROPRIETOR), YOU WILL BE CHARGED A MINIMUM PAYROLL OF $52,000 – OR MORE, IF YOU PAID YOURSELF MORE AND IT WILL GO INTO THE HIGHEST RATED CODE ON THE POLICY.

IF YOU HIRE A SUBCONTRACTOR, YOU MUST GET A CERTIFICATE OF INSURANCE BEFORE YOU LET THEM ON YOUR JOBSITE! AT AUDIT, IF YOU DO NOT HAVE A CERTIFICATE FOR EACH SUBCONTRACTOR YOU USED – YOU WILL BE CHARGED THE WHOLE AMOUNT YOU PAID THEM (INCLUDING FOR MATERIALS) OR ELSE YOU WILL HAVE TO PROVIDE COPIES OF INVOICES TO PROVE THE PORTION OF THE PAYMENT THAT WAS NOT FOR LABOR- AND THE BEST THEY WILL DO IS 40% FOR MATERIALS!

IF YOU HIRE A SOLE PROPRIETOR, OR 1 PERSON LLC AND YOU HAVE THEM SIGN A WAIVER – YOU NEED TO SEND THAT TO YOUR INSURANCE COMPANY SO THEY CAN EXCLUDE THEM ON THE POLICY BEFORE THE WORK IS DONE. MAKE SURE THEY ARE A 1 MAN OPERATION AND DO NOT HAVE EMPLOYEES!!

IF YOUR BOOKS SHOW THAT YOU PAID SOMEONE THAT SAID HE WAS A 1 MAN OPERATION AND SIGNED A WAIVER, BUT YOU PAID HIM $200,000 THAT YEAR – THE INSURANCE CO MAY NOT BELIEVE YOU. THEY WILL DO THEIR OWN INVESTIGATION. IF THEY FIND THAT HE HAD EMPLOYEES – YOU WILL BE CHARGED THE $200,000 AS EMPLOYEE PAYROLL!

IF YOU GET CHARGED A $100,000 AT AUDIT AND THINK YOU CAN JUST DISOLVE THIS COMPANY AND START A NEW ONE……..IT’S NOT THAT EASY! SINCE YOU ARE IN THE ASSIGNED RISK POOL THROUGH NCCI, ANY AGENT DOING A NEW APPLICATION WILL SEE YOUR NAME PULL UP IN THEIR SYSTEM AND ASK IF YOU ARE THE SAME PERSON THAT WAS WITH THIS OTHER COMPANY. IF YOU STILL OWE MONEY TO A WORK COMP COMPANY ON A PRIOR POLICY, YOU CAN’T GET COVERED ON A NEW POLICY UNTIL THAT IS RESOLVED!!

WORK COMP RATES BASED ON REMUNERATION – NOT JUST WAGES. THEREFORE, IF PART OF THE EMPLOYEES COMPENSATION INCLUDED SOME “PERKS” SUCH AS PROVIDING A VEHICLE OR OTHER INCENTIVE, THEY WILL MONITIZE IT AND INCLUDE IT IN PAYROLL.

IF YOU ARE DOING NEW CONSTRUCTION OR STRUCTURAL REMODEL – ALL THE CARPENTRY, SIDING, DOORS, WINDOWS, DRYWALL, STAIRS, FINISHED FLOORING, CABINETS, INTERIOR TRIM,LIGHT GUAGE STEEL STUDS & JOISTS, FRAMING, ROOFING, DECKING, FENCING ALL GO UNDER CODE 5645 FOR RESIDENTIAL OR 5403 COMMERCIAL (THE HIGHEST RATED CODE). YOU CAN SEPARATE OUT THE ELECTRICAL, PLUMBING, HVAC.