About how much money does my employer pay for workers compensation?

by **hillocke** » Mon Oct 31, 2011 5:10 am

I'm an experienced carpenter in New York State, working as the only employee of a general contractor. During the turndown in the economy, I went from being a project manager to a full on carpenter, again. He has never had a claim made. The company is around 4 years old. I am considering becoming a sub-contractor for the company and I want to calculate the savings he will incure by accepting my change in status, and apply that to the liability insurance I will have to carry as a sub-contractor. In NYS a s-corp with a single employee does not have to carry WC. Just doing my research before I make the move.

Thank You

by **orson19** » Mon Oct 31, 2011 5:12 am

Apx 1/2 of 1% of your gross earnings.

by **lazaro94** » Mon Oct 31, 2011 5:23 am

Then you'll have to ask the employer. His insurance costs are not public information. As a self-employed sub, you will not be covered by WC at all should you be injured. Your liability insurance is not a substitute for WC insurance.

by **nissim42** » Mon Oct 31, 2011 5:27 am

Congratulations on becoming your own boss and as a General Contractor myself I completely support your willingness to go it alone in such a volatile economy.

To answer your question, you may want to check with your insurance carrier but per the Office of the Professions and the Contractor Manual anyone that works on a job site has to be covered under Workman's compensation insurance even if your S Corp status allows for the two person rule. As an officer of the corporation and your wife or one employee for example, working in the office are at a low hazard and not required to carry Workman's comp but if you are in the field and you are hammering a nail in wood; you must be covered.

Finally, if your boss is willing to give you work as a subcontractor most likely he is going to ask you for Liability and Workman's Compensation Insurance. So, charge to cover your insurance (expenses), reasonable profit on the job. Your former boss will understand that you now have expenses and will have to make a reasonable profit. Chances are, he will want to use you since he can depend on you. So, don't short change yourself.

I hope you do well and it would not be a bad idea to sit for the General Contractor's Exam as well. You will have such a broad base of work, especially if you physically work the job.

Good Luck in your new business

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