Is workers comp really this expensive??

Discussion in 'Car Hauler and Auto Carrier Trucking Forum' started by Atlanticus trucking, Jan 10, 2019.

  1. KANSAS TRANSIT

    KANSAS TRANSIT Road Train Member

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    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.
     
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  3. Ziggy319

    Ziggy319 Medium Load Member

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    Yes
     
  4. x1Heavy

    x1Heavy Road Train Member

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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.
  5. tallmon

    tallmon Medium Load Member

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    Yes, seems about right. I'm in CT. Same here.
     
  6. wichris

    wichris Road Train Member

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    Because most employee's could care less about an employer's cost. But with 1000 employee's you would self insure.
     
  7. recruiting madness

    recruiting madness Bobtail Member

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    I was putting a 1099 on drivers before it was fashionable. Many states now watch this closely, as I got torched in California. If you own the truck, and give the driver direct dispatch (along with a few more mandated rules), they can view your driver as an employee, not a contractor. If he/she gets hurt while in your equipment! Be careful, and make sure you do your due diligence.
     
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  8. wichris

    wichris Road Train Member

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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.
  9. brian991219

    brian991219 Road Train Member

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    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.
     
  10. Ziggy319

    Ziggy319 Medium Load Member

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    In NY you can easily pay 26 to 28% for workers comp.
     
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  11. SteerTire

    SteerTire Road Train Member

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    Not to worry. Free health care for all will offset your cost soon.
     
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