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Painting Business Owners: How Accurate Workers' Compensation Rates Help You Estimate More Precisely.

Name: Painting Business Owners: How Accurate Workers' Compensation Rates Help You Estimate More Precisely.
Uploaded: 2025-01-10T14:15:06+00:00
Duration: 44 s
Channel: Daniel Honan
Description: In this instructional segment, the speaker explains why knowing the workers' compensation (workers' comp) rate for painters is essential for creating…

10 Jan 2025 · 1 min

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In this instructional segment, the speaker explains why knowing the workers' compensation (workers' comp) rate for painters is essential for creating accurate job estimates. He describes the typical workers' comp rate format (e.g., $6 per $100 of payroll), shows how to translate that rate into an additional cost per painter by dividing the $100 payroll base by the painter’s hourly wage, and provides a concrete example: with a $6/$100 rate and a painter earning $25 per hour, the extra workers' comp cost works out to $150. By incorporating this calculated cost into labor rates, painting business owners can produce more precise production‑rate estimates.

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Understanding your numbers, super important in this regard, especially for developing your estimate. Understanding what your workers' comp rate is for your painters will help you dial in your labor rate when you're doing production rate to generate your estimate. Look at your workers' comp rate and it's going to be something like $6 out of $100, $6 for workers' comp for every $100 in payroll or whatever it is. You take that, divide your average painter pay rate into that $100, get how much that additional workers' comp rate is. So to use the example of $6 per $100 of payroll, that would be $150 for a painter that makes $25 an hour. Nailing down that cost rate will make your estimates more precise.