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Thread: Workmans Compensation for Independent Sub-contractors

  1. #1
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    Default Workmans Compensation for Independent Sub-contractors

    We are a new start up company and was wondering how much or if any is needed to set up workmans comp for independent sub-contractors?

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  3. #3

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    Have you looked through the archives for previous posts? I believe there may be some info there...
    Lenora Bowman

    Johnny B's Limousine Service
    Charlotte, NC
    We have the only Pink Escalade Limo in the Carolinas!
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  4. #4
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    Call Workman's compensation ask they will gladly supply you with their rates

  5. #5

    Smile Workers Comp.

    Check with the appropriate state agency and/or a good labor attorney on referral.



    Quote Originally Posted by trydze View Post
    We are a new start up company and was wondering how much or if any is needed to set up workmans comp for independent sub-contractors?
    Dean Schuler

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    I know nuting, I see nuting, I say nuting. To Quote Sgt. Schultz.

  7. #7
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    Before you decide to go the IC route, please do some reading through this forum. A good place to start would be here... http://www.limousinesonline.com/showthread.php?t=3548

    If you own the cars and no lease is involved, the people behind the wheel are not ICs but instead employees.

    Outside of that, laws on Worker's Comp vary from state to state. Until you provide us with some information, we can be of almost absolutely no help to you. Best thing I can say is follow Dean's advice.
    Tim Wiegman, Jr.
    Boulevard Limousine
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  8. #8
    Senior Member Salicete's Avatar
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    Not to belabor the point, but ICs in the limo business are a recipe for disaster.

    Let the flames begin…..

    ICs by their nature, if indeed they are ICs are not under your control and supervision, and have no vested interest in your company. Do you think they will go out of their way to present the best image possible of your start-up?

    If you do control and supervise them then they are not ICs and the IRS will back me up on that, and they will also help themselves to your assets if you can’t cover the back taxes you will owe on them by the time they catch up to you.

    Go the “employee” route. You will be glad you did.

  9. #9
    Super Moderator Limo Scene's Avatar
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    Hmmmmm....

    Maybe I will just point this out:

    Workmans Comp is such an old, antiquated and sexist term. Back in the day when men worked and women stayed home and baked bread, there was Workmans Comp. Along the way, the term was modernized to become known as WORKERS Comp to more properly reflect the nation's workforce.

    And I bet you guys thought I was going to address the whole I/C thing again huh?

    Go to Advanced Search. In the author field, type: Limo Scene
    In the subject field, type: Independent Contractors. Read all about it.

    See you back here in a couple weeks when you are done reading.

    Not so bad huh Ryan?
    Jim A. Luff
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    Limousine Scene - An Award Winning Company Since 1990
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    Limousines, Sedans, Vans, Charter Buses, Limo-Buses, Wheelchair Vans www.limousinescene.com

  10. #10

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    Quote Originally Posted by trydze View Post
    We are a new start up company and was wondering how much or if any is needed to set up workmans comp for independent sub-contractors?
    This is a legal matter I would suggest speaking with an attorney. I have the legal right to use IC's under my state regulations however after speaking with my lawyer it would cost me around $30,000 to assert my legal right against the state regulatory agency. However I was advised how to proform the services I want with out problems with the state it cost me almost a grand but it was worth for me, I would suggset you do the same.

  11. #11

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    Would one of you on here that claims to have legal OK to use IC's please post your approval letter from the IRS. I would love to know what kind of plan you used to get this OK and who approved it.

    Also, keep in mind, even using IC's that are legal....your commercial insurance does not cover drivers in case of injury while working and you may lose it all anyways if someone does get hurt while working for you.

    The state is not gonna' just pay the medical bills for someone that got hurt working for you.

    I have a friend in this business that found that out after about $ 40,000 in bills, then being put in mandatory workers comp plan at worst rate possible.

    BTW - his driver hit a pole in a private parking lot and claimed disability for a wrist injury, and WON.

  12. #12

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    Quote Originally Posted by BirmLimo - Michael Birmingham View Post
    Would one of you on here that claims to have legal OK to use IC's please post your approval letter from the IRS. I would love to know what kind of plan you used to get this OK and who approved it.

    Also, keep in mind, even using IC's that are legal....your commercial insurance does not cover drivers in case of injury while working and you may lose it all anyways if someone does get hurt while working for you.

    The state is not gonna' just pay the medical bills for someone that got hurt working for you.

    I have a friend in this business that found that out after about $ 40,000 in bills, then being put in mandatory workers comp plan at worst rate possible.

    BTW - his driver hit a pole in a private parking lot and claimed disability for a wrist injury, and WON.
    Who needs a letter from THE IRS. Some folks get scared when seeing or hearing those three little letters. The IRS has stipulated for years what constitutes an IC. Almost every company in my area has what is called Independent Operators my problem was with the state. It is best to seek out legal advice nobody no's it all. My lawyer went over my business plan which may be different then yours. In my case the second law firm I went to pointed me in his direction because he not only deals with workers comp he has been a few rounds with the transportation division of PSC.

    Also let me point out this is not my first business. So I'm not new to using IC's.
    Last edited by Limo-Service; December 4th, 2009 at 08:13 AM.

  13. #13
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    Quote Originally Posted by Limo-Service View Post
    Who needs a letter from THE IRS. Some folks get scared when seeing or hearing those three little letters. The IRS has stipulated for years what constitutes an IC. Almost every company in my area has what is called Independent Operators my problem was with the state. It is best to seek out legal advice nobody no's it all. My lawyer went over my business plan which may be different then yours. In my case the second law firm I went to pointed me in his direction because he not only deals with workers comp he has been a few rounds with the transportation division of PSC.

    Also let me point out this is not my first business. So I'm not new to using IC's.

    So your IC's provide the vehicles, pay their own insurance, pay their own taxes, pay for their fuel etc...
    I want to die while asleep like my grandfather,
    not screaming in terror like the passengers in his car.

  14. #14

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    Quote Originally Posted by Limo Wire View Post
    So your IC's provide the vehicles, pay their own insurance, pay their own taxes, pay for their fuel etc...
    I agree. I went one more step under my business plan and thats where me and the state disagree. I say they are not my employee and or IC. That under current law in Maryland I can lease or rent my For Hire vehicle the same as a rental car place can or like rentals unlimited. They haven't presented anything yet that states otherwise.

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    so they rent the vehicles or lease them from you and they have a nut they have to make? Similar to taxi cabs. Then in the course of the day they can do any job they want with the vehicle?
    I want to die while asleep like my grandfather,
    not screaming in terror like the passengers in his car.

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