Employees do pay the premiums for workmans comp.
Just as they pay all of the fica...not just half.
It all comes out of what they earn..it’s just hidden to fool the foolish.”””
I have been a full charge bookkeeper all of my working life.
I have been a payroll supervisor for a large company.
I have prepared many payrolls for small businesses who didn’t need a full time bookkeeper, and who I worked for as an outside contractor.
I don’t think you understand a single thing about workmen’s comp insurance.
Most states set the rates and the working job duties categories, based upon the history within that state of injuries and the cost to the insurance plan to take care of the injured worker.
For years and years, California didn’t pay attention to the fraud that was happening in workmen’s comp claims. They felt it was cheaper to just pay the claim—sometimes for LIFE—instead of going to court. The tort lawyers aided in that scamming.
I personally know of a number of fraudulent workmen’s comp claims and I know it almost put one contractor completely out of business over a bogus claim. The guy never got injured on the job site- he got injured water skiing on Sunday, a non-work day at the job.
Anyway- the cost of workmen’s comp is borne by the employer—nothing is deducted from the employee’s paycheck.
The ultimate person who gets hit for the insurance premiums on WC is the customer-——such a person who gets a new roof installed on their property.
The last time I was preparing data for the workmen’s comp insurance for a roofing company, the PREMIUM for workmen’s comp for their roofers was 110% of the gross payroll. Tht means that for every $100 paid out in gross payroll, it cost that roofing company $110 in a workmen’s comp premium for mandatory insurance.
Other catagories are lower—but even office workers, which had a premium of 53 cents on every $100, which I calculated for years, has now gone up over $2 for every $100 of gross payroll.
I know of an employer who actually sold his properties and moved completely out of Califronia to Tennessee over a battle over workmen’s comp insurance.
He ran an automotive machining business, and also taught students how to do such work, since the high schools had eliminated vocational classes.
The state of Calif wanted him to pay workmen’s comp insurance on the TUITION which those students paid. He already had liability insurance which covered those students.
He argued back that when the state of California collected workmen’s comp insurance on every single STUDENT in the entire state educational system, he would also pay such premiums!!!
His rate at that time was 43% of Gross payroll.
In Tennessee, the maximum rate for workmen’s comp insurance was 7% when he moved there, some years ago.
Enough was enough.
That is exceptionally silly!
Every cent that it costs for an employer to employ a worker above his actual pay is money taken away from what he could have been payed.
i.e If a roofing employee earns 100 dollars/day and it cost an extra 100/day to pay for mandatory insurance then if you delete the mandatory insurance the man can earn 200/day.
I say again! The worker pays for every single cent it costs to employ him. They pay every cent of fica, every cent of workmans comp...remove these things and add the $$ to his pay and the employer is paying out the same $$ but the workers pay goes up.
These are the tricks that democrats have used to hide taxes and fees that the employee actually pays. It is a dirty trick. Make them pay the man 200$ a day and withhold 100/day for workmans comp and there will be a riot! This is why they created the FICTION that the employer pays it....same with FICA. The self employed pay 100% of FICA..the employee also pays 100% they deduct 50% from his paycheck and the employer simply pays the other 50% out of the mans wages before he sees it.