Getting charged for workers comp? - Printable Version
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Getting charged for workers comp? - south.fence - 01-25-2010 06:41 PM
I own a small business in Southeast Georgia and have 0 employees. I do all the work myself. I carry general liability but no workers comp since I am not required to do so., however, when I do work for a general contractor they want to take a percentage out of my check to cover my workers comp. I really don't understand this and am curious if there is something I can do or fill out or show them that I am not required to carry it. If I am following the law in this case how is it possible that I lose about 6 percent of my labor charge to workers comp that I am not required to carry in the first place. Thank You for any information you can give me.
RE: Getting charged for workers comp? - pinnacle8742 - 03-16-2010 09:38 AM
South Fence, in many cases when the GC gets a contract, the contracting company or government entity is requiring that all subs carry work comp. 100% mandatory if the contract you are looking to participate in is a federal or state contract. At this point, if it is required in the contract or bid then it is out of the GC's hands regardless of how many employee you have or not. It's actually very cool that your GC is allowing you to get on their policy during the course of the job so you don't have to get your own policy for the rest of the year if this type of work is more the exception than the rule.
Many GC's will make all subs carry it also just out of good practice. GC's don't want to get too much into the habit of making exceptions on who can and who can't participate based on employee size and comp liability.
My recommendation is either pay their labor charge to temporarily get on their policy during the job or go out and get your own policy. This is make you more attractive and eligible to join more GC's and pick up more business. May not be what you are even interested since it sounds like you enjoy or used to flying solo with no employees. I'me sure you know the world changes the second you hire your first employee
Just my $0.02