Worker's Comp

[groomergrl]

Can anyone please tell me if they wouldn't mind, what do some of you business owners pay for worker's comp? Also, does anyone make their employees pay for it?

Stephen: Let me just share from experience in several states w/c is running 12% to 16% times the gross payroll amount, and remember some states have additional amounts for disability and unemployment on top of that. For those making business plans you should take your gross payroll and figure 30% times the gross payroll to cover w/c, federal and state employer taxes and contributions. P.S. Most groomers forget that while they are getting say 55% commission, the employer is also giving out of their 45% leftover, 30% times the 55% commission amount out of their pocket to the state and federal government. Again, federal tax is same in all states but some states have far more employment taxes and higher w/c than other states.

[lizzie2255]

Work. Comp.

Thank you Stephen. I hear from groomers who work in shops how under paid they are until they get hurt, then to the claims office they go. Employers pay thru the nose for insurance, taxes etc. not to mention over head. I figured it up once and when I had 2 pt. bathers and 2 hourly helpers grooming I was making a little over 25%. Bigger is not always better. I now have one assistant and do fewer dogs or cats at a higher rate. Works out much better for everybody. And yes here in Texas employers can deduct W.C. from a persons pay.
liz

[scullysmom]

ours runs about 250-300 per quarter if that was what you wanted??

[groomergrl]

I guess I should say does 10k-15k a year for a small shop's worker's comp insurance sound high. Also, still interested in knowing if any employees pay for it themselves. thx!

Stephen: Employers pay for workers comp, never the employees in all my experience. A small shop paying 10K, well, what is small??? Sounds too high too. I looked recently at a national study and again it runs about 12% to 15% TIMES THE GROSS PAYROLL. Therefore 10K means a payroll $800,000 a year and up, well that is not a small shop.

[Lucy in the Sky]

Scully- I am currently working a mock business plan for a small business class, and this was actually one of the questions on my list to research. How many employees does this cover? Thanks.
And who does one purchase work comp ins. through- same as the liability ins?

[scullysmom]

about five-six, under 4000 with matching every two weeks