Read this article to learn:
- Cost of Workers compensation Insurance in Florida for Painters or building painting contractors
- How to estimate workers comp insurance premiums for code 5474
How much is Florida Workers Compensation Insurance for Painters & Painting Contractors?
Let's walk through two examples showing how to estimate the cost of a workers compensation insurance policy for a building painting contractor: This will be the best way to answer "how much is workers compensation insurance for painters in Florida?"
We are using class code 5474 for this example. In Florida, the workers comp rate for painters is $12.63 per $100 of payroll for class code 5474. (as of July 2017). This rate is assigned by NCCI (National Council on Compensation Insurance).
Example #1 : Your Florida business paints buildings. You have 2 employee painters that you pay $30,000 per year each. You pay yourself $40,000. As the officer of your corporation, you filed to be workers compensation exempt. Do not include the amount you pay yourself.
| Step | What to do | Calculation | Result / Cost of Policy |
|---|---|---|---|
| 1 | Calculate your annual payroll | $30,000 + $30,000 | $60,000 |
| 2 | Divide annual payroll by $100 | $60,000 / $100 | 600 |
| 3 | Multiply by NCCI Class Code Cost for Florida | 600 x $12.63 | $7,578 |
| 4 | Add Expense Constant | $7,578 + 200 | $7,778 |
| 5 | Estimated Annual Premium of Work Comp Policy | $7,778 |
Example #2: Your Florida business paints buildings. You have 2 employee painters that you pay $30,000 per year each. You pay yourself $40,000. As the officer of your corporation, you ARE NOT workers compensation exempt. Include the amount you pay yourself.
| Step | What to do | Calculation | Result / Cost of Policy |
|---|---|---|---|
| 1 | Calculate your annual payroll | $30,000 + $30,000 +40,000 | $100,000 |
| 2 | Divide annual payroll by $100 | $100,000 / $100 | 1,000 |
| 3 | Multiply by NCCI Class Code Cost for Florida | 1000 x $12.63 | $12,630 |
| 4 | Add Expense Constant | $12,630 + 200 | $12,830 |
| 5 | Estimated Annual Premium of Work Comp Policy | $12,830 |
This will give you a basic figure on the cost of workers comp. The final rate may be slightly different. The rate above doesn't include terrorism charges, waiver of subrogation costs, or increased insurance limits. However, this basic calculation will be very close to the annual cost of the policy.
An officer of the corporation can file a workers compensation exemption with the state of Florida. The exempt officers payroll will not be included in the cost of the policy. However, if the officer is injured on the job, that officer won't be able to collect workers compensation benefits. Read our blog article on how to file a workers compensation exemption in Florida.
1099 Independent Contractors do not need to be included in the estimated payroll if they meet one of these two requirements:
1) They have a valid workers compensation exemption at the time they are paid. An exemption is issued to one person. So if multiple 1099's are on the job, you must have a valid exemption for each person.
OR
2) The 1099 has their own valid workers compensation policy. You will need to collect a certificate of insurance showing this. You will need to keep these documents to avoid extra charges from your workers compensation company during your annual audit.
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FL Class code 5474 Description:
Painting or Paperhanging NOC & Shop Operations and Drivers
This code applies to painters and employees of painting contractors that work at customer job sites. In addition to painting, these employees may hang wall paper or drive to and from the job site. Class code 5474 is the most common work comp code applied to residential and commercial building painting contractors in Florida. Use this code for painters (including drivers) that are involved in either interior or exterior painting work of residential, commercial, or industrial paintings of buildings, machinery, and equipment.
When not to Use Code 5474
It does not apply to workers involved in painting ship hulls, street or road painting, automobile painting, or painting metal structures over 2 stories (like towers, bridges, etc). If all painting is done at your location and your employees don't leave your premises, then class code 9501 may apply. If your business has an employee assigned solely to sales or solely to bookkeeping or receptionist duties (and they don't ever paint) then be sure to talk to your workers compensation agent. A less expensive code and rate may apply to these employees.
For more detailed information about a class code, please call and speak with one of our experienced insurance professionals.
Related Articles:
Florida Workers Comp Exemption Form
Workers Compensation Insurance in Florida