# Workers comp in Ohio



## ATH (Dec 14, 2009)

Am I missing something, or did anybody else notice that with the new rules the minimum rate for Ohio's worker's comp will not be 23.4% for our industry?? :jawdrop: :censored: 

Gotta love the state-run monopolies


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## loadthestove (Jan 2, 2010)

Not sure if it is true or not,but a customer of mine who is in the logging business recently told me that he had a logging job on federal land in Tenn.
On this particular job his workers comp on his timber cutters coasted him 90 %.
He was unaware of this when he bid the job and he told me that what he thought was going to be a good job,,nearly bankrupted him.


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## ATH (Jan 2, 2010)

Workers comp per the job??? Isn't that a policy you carry for all operations? I suppose if he normally operates in another state, he would have needed a different policy to work in Tenn...but that shouldn't have anything to do with whose land you are on.

What State does he normally operate in? Tenn is not one of the 4 monopolistic states (lucky) like Ohio (idiotic) is, so he should have been able to shop the open market for WC. None of the states that border TN are monopolistic... 

My first guess is that the company "earned" the high rate (though past acidents). How else 

Having said all of that: it wouldn't surprise me if the Forest Service has some dumb policy forcing people to buy outrageous supplimental insurance. As nobel as the foundations of that agency are, it has become absolutely worthless. They either need to convert all USFS land to Parks or sell it off...

Back to workers comp: I'm here crying because there is NOTHING we can do in Ohio to find a rate below 23.4% (I think that will start July 1, 2010). Brilliant move to make that change when unemployment is at a decades high...


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## cuznguido (Jan 2, 2010)

IMO the Workers Comp racket in Ohio is the single biggest obstacle facing the new business in that state. Even for established firms it is atrocious. BTDT.


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## greenguy08 (Jan 16, 2010)

Look into group rating, ATH


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## ATH (Jan 16, 2010)

greenguy08 said:


> Look into group rating, ATH


I have group rating. Without group rating, tree care would currently be taxed at an addtional 48.6% :jawdrop: We pay 14.3615% with group rating.

Because of the "Rate reform" OBWC did, rate group rating cannot lower what you owe by more than 51% of the industry base rate...meaning the lowest possible rate will be 23.4%.

I am hoping that somebody can show me that this is untrue. But I'm pretty sure we are all stuck July 1 2010.

I know we'll be finding ways to lower payroll to make up for that extra 9%. That probably means fewer hours. The other thing I think I will look into is whether it is legit to form another company with employees who do not use power equipment, apply pesticides, etc... (landscaping?) and when anybody is dragging brush, they will be on that company's payroll. I know logging companies often have a second trucking company to lessen the pain inflicted by worker's comp taxes, but I am not sure if the employees are allowed to switch 'employers' throughout the day?

Somebody PLEASE tell me I have read something wrong and I can stay at 14.4% (that is bad enough...).


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## greenguy08 (Jan 16, 2010)

WTF! I'm hearing more about this-sounds like you're right! Like profit margins aren't tight enough! Every percent counts.


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