# Workers Comp Requirement Question



## mcpepper (Oct 27, 2015)

Hi all. Recently received a demand for workers comp certificate. I'm in TN and on their exemption registry, which has gotten me past this requirement for years. Got a threatening email on Friday stating that this is no longer acceptable and that I am required to have this cert. I am a sole proprietor, no employees, using only casual labor (1099). I have spoken to a couple of insurance companies, and needless to say its rediculously expensive....set my self as an employee, payroll tax, admin fees, blah, blah, blah, $6,200 per year!! :furious: Anyone out there in the same boat or have any advice? How are you guys getting coverage if it's required? Sounds like another scam. Trying not to be long winded, so if you need additional details, let me know. Any help would be appreciated.


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## Craigslist Hack (Jun 14, 2012)

Just tell them no.


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## mcpepper (Oct 27, 2015)

Wish it were that simple...saying they will make me inactive without it.

Edit: I don't mind getting the insurance if it keeps me going...just seems expensive and a hassle to set up payroll. I really was curious how others were handling this requirement in similar situations. My knowledge of workers comp is very limited.


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## madxtreme01 (Mar 5, 2015)

mcpepper said:


> Wish it were that simple...saying they will make me inactive without it.
> 
> Edit: I don't mind getting the insurance if it keeps me going...just seems expensive and a hassle to set up payroll. I really was curious how others were handling this requirement in similar situations. My knowledge of workers comp is very limited.


I spoke to my agent today, and he advised me to set up a dba so I'm not responsible for paying on my subs, and list 1 employee as the minimum. Exclude yourself as the owner, but write yourself as the employee for administrative. So your company earns a profit, but your payroll for the administrative tasks you are responsible for is what you are covering. I was advised to incorporate to make this even easier, since it's a fine line of getting away with it and getting caught. I have no interest in the coverage either and my state doesn't require it if I have no employees. Just be careful if you have subs. Apparently anyone you hire that doesn't have coverage you are responsible for covering even if they are a 1 man show like yourself.


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## Craigslist Hack (Jun 14, 2012)

mcpepper said:


> Wish it were that simple...saying they will make me inactive without it.
> 
> Edit: I don't mind getting the insurance if it keeps me going...just seems expensive and a hassle to set up payroll. I really was curious how others were handling this requirement in similar situations. My knowledge of workers comp is very limited.



Who is the client that is requiring this?


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## Bigtrucker (Mar 18, 2014)

Craigslist Hack said:


> Who is the client that is requiring this?


5 sisters

I work with a few small contractors and they are saying the same thing
so its just a hunch


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## madxtreme01 (Mar 5, 2015)

Craigslist Hack said:


> Who is the client that is requiring this?




A lot of them are starting to require this, especially if they do rehab work. Cyprexx is one that has asked me of this and said they are cutting 9% of my invoices for administrative fees. When I asked if I was covered I was told no, then I asked if that was legal and they went silent with no response.


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## Craigslist Hack (Jun 14, 2012)

Bigtrucker said:


> 5 sisters
> 
> I work with a few small contractors and they are saying the same thing
> so its just a hunch


Oh well I know exactly what I would tell them! 

I figured it was Cyprexx and I can't think of one good reason to work for them. I can think of many many reasons not to.

Funny thing is we have done multiple jobs for Cyprexx and never signed a single document. No vendor packet nothing. I refuse to. They call and ask will you do XYZ? I say sure for my price. They agree send me a work order. When I invoice they pay with a credit card so I have my money.

It's not high volume just one off's here and there but people always think they HAVE to fill out vendor packets, they HAVE to get insurance, they HAVE to work for the companies pricing. You don't have to do any of it!


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## RichR (Sep 22, 2012)

They are requiring you to have it because they have to pay for every single vendor they use that doesn't have their own policy exempt or not. Sh*t and insurance rolls down hill.


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## madxtreme01 (Mar 5, 2015)

RichR said:


> They are requiring you to have it because they have to pay for every single vendor they use that doesn't have their own policy exempt or not. Sh*t and insurance rolls down hill.


yea well isn't it bs for the workers comp policy if you are responsible to pay for subs that aren't required in their state to have the coverage in the first place? I'm fighting this now and looking for a loop hole


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## Wannabe (Oct 1, 2012)

Fight it? Good luck fight US Labor Laws. I've spoken my piece on this subject many times. Fun to pay? Hel* no! Fun to do all the extra paperwork audits? Hel* no!

That's why you charge more for your service &#55357;&#56865;


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## madxtreme01 (Mar 5, 2015)

Wannabe said:


> Fight it? Good luck fight US Labor Laws. I've spoken my piece on this subject many times. Fun to pay? Hel* no! Fun to do all the extra paperwork audits? Hel* no!
> 
> That's why you charge more for your service ��



by fight it I didn't literally mean that, but the only loop hole I have thought of so far is to create a whole new company for just the companies that require wc coverage and stick to the bare minimum coverage. I'm waiting to hear from my insurance agent if a DBA would be sufficient enough so I don't need another liability policy also.


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## JoeInPI (Dec 18, 2014)

The other loophole is to not work for them? I'm in Michigan and as a single member LLC, I use temp agency workers if needed that have WC coverage through the agency I hire them through. We don't need WC, and have a waiver from the State. If a company requires it, I just say that we're not working for them. Just did it again about 2 hours ago.


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