contract climbing query

[KentuckySawyer]

Do I need to have a payroll set up for my employees or is payment by the job par for the course? Regarding workman's comp I mean.

I would rather just go ahead and set up a payroll and get a WC policy and know that its done right, but I haven't made time to go see the accountant. Are there benefits to having a payroll for my workers?

 

[Kneejerk Bombas]

Stumper, I'm sure you are sincere when you say you will take care of yourself if injured. But what if you were seriously injured and your loved ones were taking care of you - who do you think their lawyer would go after?

This is where his theory really crashes. His family wouldn't be the ones to sue, the creditors would. If he's in the hospital from a work related injury and on going costs are running into the hundreds of thousands of dollars, ya think the hospital just might want to get paid? Yes they will, and they will go after the the next one in line for the money.

WC doesn't cover the owner, he needs to incorporate and put himself on payroll, then he will be covered as an employee of the corporation.

KS, if you have employees, you need to stop working and go immediately to an accountant. You could be way in the poor house and not know it.

 

[John Paul Sanborn]

Do I need to have a payroll set up for my employees or is payment by the job par for the course? Regarding workman's comp I mean.

I would rather just go ahead and set up a payroll and get a WC policy and know that its done right, but I haven't made time to go see the accountant. Are there benefits to having a payroll for my workers?

I agree with Mike here, labor laws require that you compensate regular employees on an hourly basis. This is to protect them from predatory employers who set unrealistic piece-work goals.

As an aside, if you have a forman who you pay a salery and that forman works more then half of his day, you are in viloation and could get slammed, especially if there is a falling out an said former employee goes to Labor Realtions for back OT pay. I've seen it happen.

 

[KentuckySawyer]

As an aside, if you have a forman who you pay a salery and that forman works more then half of his day, you are in viloation and could get slammed, especially if there is a falling out an said former employee goes to Labor Realtions for back OT pay. I've seen it happen.

By "half of his day" do you mean the 8hr work day, or the 24hr day?

 

[TreeJunkie]

Even though WC is generally the same around the country, it can vary from state to state.

Our payroll gets audited every year, and it is our payroll that determines our WC and Liability premium. If we have a sub listed on our books that we don't have a current Certificate of Insurance showing WC & Liability coverage - whatever we paid that sub gets added to our payroll totals which raises our premium. If I'm paying a climber sub $30+/hr I don't want to be paying our WC rate on that.

QUOTE]


Who's your insurance company? I take it they are the ones auditing your records? I understand the philosophy behind what you are saying. However if i was dealing w/ an insurance company who wase not going to be auditing my records constanly; then who would force me to pay back WC on previous subs?

 

[tophopper]

Part of a WC policy is a self audit, which you are required to report payroll amounts, and additionally they ask for copies of your most recent taxes. If your taxes are up to snuff it will also show subcontract dollars you spent(providing you categorized it as subcontracting), you WILL pay renumeration on sub dollars paid out unless you also send copies of the sub's insurance certs with their WC policy numbers. If they didnt ask you to self audit you wouldnt be paying any WC fees.

 

[John Paul Sanborn]

By "half of his day" do you mean the 8hr work day, or the 24hr day?

I think it is worded that at least 51% of duties musat be managerial.

Several rescent cases have been in fast food and retail where junior managers are spending more time working the till or on the line then actually managing the store. This is ment to prevent companies from taking a lead worker position and dressing it up with a management title so they can get a person in there at a flat rate and work them 70 hours.

 

[KentuckySawyer]

I see what you mean. Thanks for the clarification.

I talked to my accountant today and got the ball rolling on a payroll. Now on to WC insurance.

I'm obviously new to the business aspect of this field and I appreciate everyone's help.