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1.
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In those states where workers compensation laws provide that
a contractor is responsible for the payment of compensation benefits to employees
of its uninsured subcontractors, the contractor must furnish satisfactory
evidence that the subcontractor has workers compensation insurance in force
covering the work performed for the contractor. The following documents may
be used to provide satisfactory evidence:
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Certificate of insurance for the subcontractor's workers compensation
policy
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Certificate of exemption
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Copy of the subcontractor's workers compensation policy
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2.
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For each subcontractor not providing such evidence of workers
compensation insurance, additional premium must
be charged on the contractor's policy for the uninsured subcontractor's employees
according to Subcontractor Table 1 and 2 below.
Subcontractor Table 1
(Exceptions: FL, TN)
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| If the contractor has not furnished evidence of workers compensation
insurance and . . .
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Then to calculate the additional premium . . . |
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Furnishes complete payroll records of the subcontractor’s
employees . . .
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Use the payroll detailed in the records
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Does not furnish complete payroll records and the subcontract
price does not reflect a definite payroll amount . . .
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Use the full subcontract price of the work performed during the
policy period by the subcontractor as payroll
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Does not furnish complete payroll records, but documentation
of a specific job discloses that a definite amount of the subcontract price
represents payroll . . .
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Use the payroll amount indicated by the documentation as the
payroll, subject to the minimums in Subcontractor Table 2 below
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Subcontractor Table 2
(Exceptions: FL, TN)
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If the job involves:
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Then the minimum to calculate additional
premium is:
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Mobile equipment with operators (such as but not limited to earth
movers, graders, bulldozers, or log skidders)
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Not less than 33 1/3% of the subcontract price
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Labor and material
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Not less than 50% of the subcontract price
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Labor only
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Not less than 90% of the subcontract price
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Piecework
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Not less than 100% of the subcontract price (The entire amount
paid to pieceworkers must be the payroll.)
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3.
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Vehicles with drivers, chauffeurs, or helpers entitled to
benefits under workers compensation insurance law may be engaged under verbal
or written contract. The amount used to calculate the premium is determined
in the following manner:
Subcontractor Table 3
(Exceptions: LA, OR, RI, WI)
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| If the owner of such vehicles has not furnished evidence of workers
compensation insurance and . . .
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Then . . . |
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Payroll can be obtained
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The total payroll of these drivers must be included as payroll
of the insured employer that contracted for the vehicles.
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Payroll cannot be obtained or the driver is an owner-operator
and does not receive a set payroll
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1/3 of the total contract price for the vehicles must be included
as payroll of the drivers.
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The contract price does not include the cost of fuel, maintenance,
or other services provided to the owner or the owner-operator of a vehicle
under contract
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The value of these goods and services must be added to the contract
price before determining the 1/3 amount.
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4.
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In all cases, the payroll determined for subcontractors is
assigned to the classification that would have applied if the individuals
had been employees of the contractor.
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5.
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In all cases, if an experience
modification has been established for the contractor, this experience
modification must be applied to the premium developed for the uninsured subcontractor.
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