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ProCut TM
02-11-2010, 02:05 AM
Ok guys it is high time I put someone on the books.
I am in FL and need help with what to expect from the good old government.
I found this SITE (http://smallbusiness.yahoo.com/r-article-a-41107-m-5-sc-51-hiring_your_first_employee_ten_things_you_must_do-i) but I would like to hear from the people that are doing it.
I got a quote a couple of years ago on workmans comp ins. just for me and they wanted $4000 per year (yes that is 3 zeros). I simply can't afford or justify that kind of money when I only pay $480 per year on my $1million liability policy.
also does anyone know what unemployment taxes cost per employee?

please chime in!!

Steve
02-11-2010, 09:44 AM
I got a quote a couple of years ago on workmans comp ins. just for me and they wanted $4000 per year

Maybe each state is different but as the owner, I thought you didn't have to have workmans comp?

Also, don't they choose the rate based on the job description? So the more machinery or potential for accidents, the higher the rate?

ProCut TM
02-11-2010, 05:03 PM
Maybe each state is different but as the owner, I thought you didn't have to have workmans comp?

Also, don't they choose the rate based on the job description? So the more machinery or potential for accidents, the higher the rate?

you are right Steve, as the owner I don't need it that's why I was shocked at the cost.

I heard there is a way to be exempt from it for a small business. I need to do more research.

Hoping someone here has first hand experience with this.

Steve
02-11-2010, 07:38 PM
Another one of our forum members is from FL with a few employees. Chuck, screen name musician/lawnman.

I just sent him an email. I bet he has a bunch to say that could help us understand this process better.

musician/lawnman
02-12-2010, 02:05 PM
ProCut,

Yeah it's insane to get your own worker's comp policy for 1 or 2 employees.
You are (I asume) workers comp exempt as an owner. You can only have an employee be exempt if they are a 10% or more owner of the company.... so you could essentially have them buy in & make them a partner (I really don't reccommend this) or do what I did....
Go check out employee leasing companies. At 1st basically had a day labor service handling my payroll & W.C. coverage. Then found that the employee leasing places had dropped alot of the minimums that they had when I started. They used to require 2-3 employees on the books or a minimum of say $600-1000 / wk in payroll & since that wasn't going to happen I had to go with the day labor thing. (I never hired day labor guys as employees). I'd hire my guys separate, have them fill out the app for the day labor service & they were then technically employeed by the service which is good because if you fire them, they need to report to the day labor place the next day for work or they "quit" their job & so... no need for unemployment insurance.
Now I use an employee leasing company. All taxes, w.c, unemployment is included.... I fill out a form online with each employees hours, the email an invoice to me, I write 1 check & pick up checks for the employees. They handle w-2's & all that. Makes my life easier.:)
Hope that helps!

ProCut TM
02-12-2010, 04:14 PM
Thanks M/L that sounds like a great plan. I will look into the leasing service.

bnclawncare
02-12-2010, 04:59 PM
Ok guys it is high time I put someone on the books.
I am in FL and need help with what to expect from the good old government.
I found this SITE (http://smallbusiness.yahoo.com/r-article-a-41107-m-5-sc-51-hiring_your_first_employee_ten_things_you_must_do-i) but I would like to hear from the people that are doing it.
I got a quote a couple of years ago on workmans comp ins. just for me and they wanted $4000 per year (yes that is 3 zeros). I simply can't afford or justify that kind of money when I only pay $480 per year on my $1million liability policy.
also does anyone know what unemployment taxes cost per employee?

please chime in!!

I think is based on what you make per year. For one of my new guys, its going to cost me $1100.00 per year. They based that on what I will be paying him for the year.
Also, here, my $1million liabilty is only $220.00 a year. Big difference!

ProCut TM
02-12-2010, 10:36 PM
BNC****
what other costs will you incur on your end besides the $1100 w.comp?
how many employees do you have?
how many hours per week will they work?

Thanks for your input, keep it coming guys. This is good stuff.

ProCut TM
02-13-2010, 03:58 AM
well I just shot out several e-mail to local leasing companies, I guess I'll see what they have to offer in a few days.

Steve
02-13-2010, 06:24 AM
I cant wait to hear how this works out. Keep us posted on this.

bnclawncare
02-13-2010, 09:06 AM
BNC****
what other costs will you incur on your end besides the $1100 w.comp?
how many employees do you have?
how many hours per week will they work?

Thanks for your input, keep it coming guys. This is good stuff.

Other than the workers comp, it is only their salary and my 7.5% portion of the taxes that I need to pay.

XtreemGreen
02-13-2010, 01:43 PM
Down here, I dont think you need it for 1 employee.. My dad doesnt have it and he has 2 employees..
I will ask him and see what he says..
We signed a leagle wavier if we get hurt on the job.. Ill ask him about that also..

you can always hire me :).. im looking for some part time work..

Steve
02-14-2010, 07:02 AM
My dad doesnt have it and he has 2 employees..
I will ask him and see what he says..
We signed a leagle wavier if we get hurt on the job.. Ill ask him about that also..

I'd like to hear what he has to say. Do you have a copy of the waiver to show us?

ProCut TM
02-14-2010, 10:07 PM
Down here, I dont think you need it for 1 employee.. My dad doesnt have it and he has 2 employees..
I will ask him and see what he says..
We signed a leagle wavier if we get hurt on the job.. Ill ask him about that also..

you can always hire me :).. im looking for some part time work..

any word yet?
I'd like to see the waiver too

XtreemGreen
02-14-2010, 10:27 PM
No info yet...They took my son to Daytona 500 today...

ProCut TM
02-15-2010, 10:38 PM
I talked to paychex (https://www.paychex.com/) today I will post more info when I get it.
I spoke with someone else who said you can be exempt from workman's comp if you have fewer than 4 employees. paychex does the w comp for $75+pay as you go based on the wage ($20k per year for one employee would be around $1000 total)

ProCut TM
02-22-2010, 08:25 PM
Paychex was the only company to respond to my RFI. I have a meeting with them 3-2-10

I met with my CPA today he verified that in FL you can get exempt from workers comp for up to 4 employees after that you need it for sure.

Next I need to incorporate, everyone I talk to so far has said s-corp is the way to go. Anyone got any insight on this?

XtreemGreen
02-22-2010, 10:02 PM
Paychex was the only company to respond to my RFI. I have a meeting with them 3-2-10

I met with my CPA today he verified that in FL you can get exempt from workers comp for up to 4 employees after that you need it for sure.

Next I need to incorporate, everyone I talk to so far has said s-corp is the way to go. Anyone got any insight on this?

Thats it.... I knew that, but I didnt want to be wrong..Also exempt is family members..

ProCut TM
02-22-2010, 10:04 PM
Thats it.... I knew that, but I didnt want to be wrong..Also exempt is family members..

I'd still like to see a copy of the disclaimer you were saying your dad made his employees sign.