Workers Compensation Rough Quote

Discussion in 'Discuss Your Favorite Trucking Company Here' started by ejames, Apr 13, 2017.

  1. ejames

    ejames Bobtail Member

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    Apr 13, 2017
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    Hi everyone, new member here and this will be my very first post. I work for a new small trucking company in California and was asked to get somewhat of a rough figure regarding workers comp insurance. Quotes are on the way, so this is just giving me an idea of what others were paying when they just started out. Thanks in advance and deets are below.

    5 drivers
    Work - local pickups and deliveries
    Location: San Bernandino county, all work within 100 mile radius, interstate only
    Equipment - full size semis which is Class 8 GVWR exceeding 33,000 lbs
    History: brand new, 0 years of w c coverage.
    Annual driver pay: 45,000
     
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  3. brian991219

    brian991219 Road Train Member

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    Aug 10, 2013
    Lords Valley, PA
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    Worker Compensation is usually based on a percentage of gross payroll which varies by industry, location, and company experience. I am not familiar with California specifically but my New York and Pennsylvania operations paid 14% of gross payroll for drivers in the car haul business (local not otr), 8% for mechanics, and 1% for office support staff.
     
  4. brian991219

    brian991219 Road Train Member

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    Aug 10, 2013
    Lords Valley, PA
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    Another thing about WC insurance, the premium they quote you upfront, and that you pay monthly is not final until after the end of the policy period. The insurance company will come in a month or so after your policy renews and audit your payroll records and job duty assignments then decide if the premium for the previous year needs to be adjusted. Example, we made monthly payments to our insurance company all last year based on the 2015 payroll numbers then had to write a $6,000 check in January 2017 to cover the difference in what was billed and what the auditor decided we owed. The WC insurance auditor will also look as sublet (contracted) haulage and can assess you worker comp premiums for the work of those independents under some circumstances.

    Based on you numbers, $45,000 annual salary with 5 drivers you have a gross payroll of $225,000 so on the low side (8%) your WC premium will be $18,000 per year, high side (14%) it will be $31,500. The auditor will also look for any additional employees such as dispatcher, mechanic, clerk, etc and want their payroll numbers as well so you will pay a different percentage of gross payroll for those employees.
     
    ejames Thanks this.
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