Also if you are running the Northeast you have to have an A3 endorsement, that may be what is banging your rate up, I know after 20 years we had to add it, never heard of it before but evidently it's a thing.
Is workers comp really this expensive??
Discussion in 'Car Hauler and Auto Carrier Trucking Forum' started by Atlanticus trucking, Jan 10, 2019.
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Why is it that as a company dweeb most of my life no one has bothered to explain that insurance at this level is that expensive for the year. If you had 1000 employees that bill must be monstrous.
rabbiporkchop Thanks this. -
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rabbiporkchop, Matt43324, Tombstone69 and 1 other person Thank this.
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rabbiporkchop Thanks this.
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Hire an "employee" on a 1099, put occ ins in lieu of comp. They get injured and realize how much they have to pay and you can have a big problem.
Matt43324 Thanks this. -
This post brings to light a reality that many employees do not understand. The cost to an employer is so much more than just your declared wage.
First they have a tax liability of 7.5% of your gross pay, regardless of what you claim for deductions and in addition to the 7.5% that is deducted from your paycheck.
Then there is workers comp, anywhere from 7-20% of gross payroll for drivers, less for office staff.
Finally there is the other miscellaneous costs such as unemployment, medical or other benefits paid on your behalf, costs of hiring and training, maybe physicals and other perks too.
Costs can easily be 40% or more above the base pay rate. This is the reason so many fly by night "employers" scam the system with 1099 positions that don't meet the independent contractor test, giving them an unfair advantage over employers that do things legally. Plus, it leaves the "employee" exposed for tax and injury liability, which is unfair to someone that simply wants a job not to own a business.TexasKGB, bzinger, 3noses and 1 other person Thank this. -
In NY you can easily pay 26 to 28% for workers comp.
brian991219 Thanks this. -
Not to worry. Free health care for all will offset your cost soon.
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