Workers Comp Insurance Law in 2008

[dmjr]

Over the past week I have been hearing that possibly after Jan 1 2008 that everyone will need to carry workmens comp insurance? Is this true? I am a one man show.

[ACutAbove]

yes the state worded a new bill that passed wrong and now any person on a job site will have to be covered. From what I gather it was ment to be something for contractors who do state jobs but the wording got messed up or something like that.
As far as who will have to carry it I dont know who it applies to...... I just know it applies to me and it going to cost me more next season than it did this season.

Check with your insurance company for all the accurate details about who it is ment for and if you will be needing it.

[fatlazyless]

What I read is that it applies to LLC, limited liability corps, that previously did not have to have worker's comp for officers of the corporation, and treated them as if it were a sole proprietorship. With the new changes, everyone employed by an LLC must be covered by a worker's comp policy.

Indivuals who are sole proprietors, or a dba-doing business as, cannot get and are not required to have a workers comp policy on themselves. They can get, at their option if they want it, a disability policy that is similar to wc.

Don't really know about this but isn't the LLC fairly new and one of its' pluses was this wc loophole for up to three officers of the corp? As every small business person knows, workers comp can be WAY WICKED EXPENSIVE and a major reason people go with the LLC is to avoid that expense. Where-O-where did these newbie Concord legislators come from, anyway, and when do they leave?

If you google 'Small contractors caught short by change in law' the first item should be an Oct 21 article by Kate Davidson in the Concord Monitor.

[Little Bear]

Originally Posted by fatlazyless

Where-O-where did these newbie Concord legislators come from, anyway, and when do they leave?

If you google 'Small contractors caught short by change in law' the first item should be an Oct 21 article by Kate Davidson in the Concord Monitor.

They came from the far left (read liberal democrats), but I don't think they will ever leave.

There's also an additional article to the article that you referenced that was written by Concord Lawyer, John Cunningham who, as they say, "wrote the book" on LLC law. He's also been my corporate attorney for over 10 years and knows his stuff. A good read for anyone hurt under this new legislation.
http://www.cmonitor.com/apps/pbcs.dl...1028/OPINION02

[WeirsBeachBoater]

So let me get this straight. A one man show has to have WC on himself? How the heck does that make sense?

[fatlazyless]

Yes, if the one-man show has created a LLC, then yes he now is required to have a worker's comp policy.

If a one man show is a sole proprietorship then no, worker's comp is not required or even available for him-herself. One may purchase a disability policy that is similar, but it is not worker's comp, it is disability.

So, as a one man show, in my not too well informed mind, it is probably best to work as a sole proprietorship with a liability policy...and then if you get injured while working.....do not mention that to the hospital because your health insurance, assumng you even have health insurance, will not pay for injuries that happened while working.

(Isn't this health insurance system all a good reason to vote for Mitt Romney.......hey at least here's hope for insurance reform with him. A Republican who will try to improve health insurance....how about that?)

[WeirsBeachBoater]

"the amendment poses grave problems for many New Hampshire businesses in the building and construction trades"

So this leads me to believe it won't affect all LLC's just those in building and construction?

Very confusing article. So if there is a person in the house cleaning business and they form Suzies homecleaning LLC, they won't be affected? Or Bobs Floral Studio LLC? Just people like, Bills Construction LLC ?

[ITD]

This whole topic has me torn, on the one hand WC is another tax imposed on us but on the other hand, I would much prefer that employers pay this tax that takes care of on the job injuries versus an employee working under the table who gets injured and shows up at the ER wanting free care. As we all know, "free care" isn't free, you and I pay for it.

[Fishy Cover]

I thought that forum readers would like to know what workmen's comp costs. Our construction company builds houses and does remodeling-- nothing really dangerous but certainly more risky than an offce or retail worker.

Our workmen's comp premium is 20%-- that is for every dollar of payroll we have to pay 20 cents for w/c. When customers ask us how our hourly rates are determined and we tell them this, they are astonished. Also, on top of the WC, we have to pay 7.65% for FICA/Medicare, 2.7% (of the first $8,000 per employee) for state unemployment tax (SUTA) and .8% (also of the first $8,000) for federal unemployment tax (FUTA).

Altogether these taxes amount to 31.15% of payroll. See how much fun it is to be a small contractor!

[SIKSUKR]

Aw that cant be right Fishy.Your part of the rich corperate world the Dems want to take more taxes from.Small companies like yours and mine know better.

[Belmont Resident]

This is what I understand of this new law.
I'm an LLC and a sole proprietor.
I was told that I do not need to worry about this law unless I
1. Hired any employees
2. Entered a job site and worked as a sub contractor.

If you are a 1 man show (even an LLC) then you do not fall under this new law unless you work on a job site. If all you do is work for the homeowner then you are not required to get this insurance. However if you work for a builder who hires you to work on a job site then you would have to get coverage. In most cases you will receive a letter of notification from your insurance company requesting compliance or they will probably drop you.
I’m not sure but one way around this might be to work directly for the homeowner and not the GC. Maybe some sort of an agreement could be made.
Of course if it is commercial then all bets are off.
Hope this is correct and helps. I know I have not received any letters and was told when inquiring that I do not fall under the requirements by my carrier.

[Tired of Waiting]

Originally Posted by fatlazyless

(Isn't this health insurance system all a good reason to vote for Mitt Romney.......hey at least here's hope for insurance reform with him. A Republican who will try to improve health insurance....how about that?)

It could be worse!!

Here in Mass ALL contractors must have WC. My best friend owns a flooring store, carpet, tile, etc. He sells directly to home owners. His installers are all independent contractors. They install the goods and get paid directly by the home owner or by the store, option of the customer. It does not matter how they get paid. They MUST have WC.

If it is found that they don’t have WC then the state makes the store pay for the WC. So everyone from LLC to one-man-shows must carry WC.

This is Mitt’s law. You want him to bring socialized medicine to the nation? Go for it, but be prepared to pay through the nose. Oh, and don’t forget the quality of medical care will go down as it does in ALL socialized countries.

ToW

[idigtractors]

Originally Posted by Tired of Waiting

It could be worse!!

Here in Mass ALL contractors must have WC. My best friend owns a flooring store, carpet, tile, etc. He sells directly to home owners. His installers are all independent contractors. They install the goods and get paid directly by the home owner or by the store, option of the customer. It does not matter how they get paid. They MUST have WC.

If it is found that they don’t have WC then the state makes the store pay for the WC. So everyone from LLC to one-man-shows must carry WC.

This is Mitt’s law. You want him to bring socialized medicine to the nation? Go for it, but be prepared to pay through the nose. Oh, and don’t forget the quality of medical care will go down as it does in ALL socialized countries.

ToW

We've been business in MA for 20+ years and a one man show. I do not require WC as long as my sub's are insured and that they carry it if applicable to them. Another words they have employees working for them. I need to show a binder for each sub from their insurance company. That's it. NO WC for me and my company.

[Skip]

From this morning's on-line Union Leader, a story explaining that major revisions are most likely coming to the law in question here. The story also clearly explains the issue and how it came into existence. Interesting reading if you are a small contractor.....

Here is the STORY.