The ABCs of Workers Compensation

This may seem esoteric and dry to a lot of readers, but if you are an employer you are well aware the Idaho Workers Compensation system can have a big effect on your bottom line.

Ben Page

I'll put it to you straight. For an employer, workers comp is always going to be better than the alternative — ending up in court battling it out every time an employee is hurt.

Let’s dive into a few things you should know:

1. The Idaho State Insurance Fund is not your only option.
While we’ve placed many of our clients with the Idaho State Insurance Fund because it makes sense for them, more often than not one of the other leading workers comp providers can offer a better deal. Each company has its pros and cons, and none of them are the best for everyone and every type of business. You might be surprised to know that in 2010, of the $345,569,621 dollars spent on workers comp, only about 44.5 percent of that went to the Idaho State Insurance Fund.

2. The state does not control pricing.  
Each company can offer different bottom line rates. Terms like experience mod, standard deviation, premium credits and dividends can make it hard to see what you’re really paying. A qualified agent can simplify all of this and tell what your bottom line cost is so you can accurately compare proposals from different companies.

3. Chances are you unknowingly have paid what they call a deposit.
The Idaho State Fund requires a 25 to 50 percent deposit. If you are insured with the Idaho State Fund you’ve paid a deposit on top of the premiums, even if you’re unaware of this.

4. Not all companies require a deposit.
In weighing the pros and cons of each company, make sure to factor in how big a deal it is to you to have additional money tied up in a deposit.

5. You can get cash back.  
When you switch from a company that required a deposit to one that doesn’t, you free up your deposit. Timing of the switch is important so it isn’t eaten up in early termination fees. I’ve never had anyone complain about getting a check for a few thousand dollars after switching.

6. Easier installment plans.
There are lots of different options provided by different companies. Some of the most popular include those that just bill on your actual payroll and not on estimated payroll. This helps your cash flow and eliminates a lot of the hassle.  Also, you might be able to package this with your other policies to simplify everything, including the billing.

7. Automated payroll reporting saves you time and money.
This has become very popular. It is a system where a program like QuickBooks can essentially automatically report the payroll and eliminate all the hassle. Couple this with EFT payments and you’ve just saved up to eight hours a year in time and eliminated a lot of the costly errors that can come from manually filling out these reports.

8. Online Payroll Reporting.  
Even if you don’t want to automate everything completely, maybe you’d like to get rid of old school papers and fax hassles that can suck up time. How about just reporting your payroll with an easy and quick online system?

9. Loss Prevention Resources.
Your losses can affect your rates. Some companies have incredible loss prevention resources you can use for free. This can include do-it-yourself resources or having professionals help you for free. Still, not all companies provide the same services in this area.  This is definitely something any business looking to reduce claims might want to investigate. Depending on a number of factors, a few insurance carriers offer dividend programs to certain clients that can result in a big check at the end of the year if all goes right for you and the company.

10.  Extras With Some Companies.  
Some companies offer special benefits for targeted industries. This can be something as simple as lower rates, or it can be something outside of rates. For example, there is a very competitive program for medical offices that will pay for the testing of patients in the event of a sharps incident.

Every insurance company has an “appetite” for certain types of businesses in certain types of industries. No one company is the best for everyone.  There are dozens of competitive companies in Idaho, all with their own pros and cons.

Ben Page is a commercial insurance agent with Page Insurance in Idaho Falls and a member of the Square One business development network.

Idaho Falls building permit numbers show decline in 2014

Construction last year at Broadway Ford in Idaho Falls.

With 2014 in the rearview mirror, let’s take a look at the numbers from the city of Idaho Falls Building Department.

Year-end totals show a second year of decline. Overall, the valuation in the city’s building permits dropped from $83.5 million in 2012 to $70.7 million in 2013 to $62.4 million in 2014.
Before anyone starts hanging black crepe, here are a few things to consider:

• Total valuation in the past three years was roughly $216 million. The three years before that — the recession years of 2009-2011 — Idaho Falls building permits totaled roughly $95 million. That’s an increase of more than 127 percent.
• There were 31 permits issued for commercial buildings in 2014, compared to 25 in 2013 and 11 in 2012.
• Permits for single family dwellings were down, but three-year totals tell a much more positive story. For 2012-2014, permits totaled 395. In 2009-2011, that number was 205. Overall, permits for single family dwellings in the past three years are up 92 percent.

One thing worth bearing in mind while looking at building permits is that one big project can have a huge effect on the numbers in a single year. Three years ago in Idaho Falls, it was the four schools and the Department of Energy’s campus on University Boulevard that skewed things so high. In 2013, the Scientech project at Snake River Landing. Last year, Broadway Ford and Home2 Suites, both due to open this year.

Likewise, when we look at the 2014 numbers from Ammon (as we will sometime this week), Cabela’s and the new D.L. Evans Bank are likely to make things look really robust there.

Togo's plans to open Idaho Falls location Jan. 16

Togo’s “West Coast Original” Sandwiches is planning to open its first location in Idaho Falls, at 2994 South 25th East (Hitt Road), with a ribbon cutting at 11 a.m. on Jan. 16.

To mark the occasion, it will be giving away 1,000 free hot pastrami and turkey avocado sandwiches. Patrons can reserve their free sandwich by simply registering online at www.togosidahofallsgiveaway.com.

Togo’s Idaho Falls will be open Monday through Thursday from 11 a.m. to 9 p.m., Friday and Saturday from 11 a.m. to 10 p.m., and Sunday from 11 a.m. to 5 p.m.

Janis Joplin book author John Byrne Cooke to speak Saturday at Barnes & Noble in Grand Teton Mall

Author John Byrne Cooke will be at the Idaho Falls Barnes & Noble store Saturday, Jan. 10 at 1 p.m. to talk about and sign copies of his book “On the Road With Janis Joplin.”

John Byrne Cooke

Cooke, who lives in Jackson, Wyo., was the rock legend’s road manager from 1967 to 1970. His picture of Joplin is of a hugely talented singer who was much more than the onstage dynamo and hard-drinking woman of public perception. As Cooke reveals, she was also funny and highly intelligent, a fully-rounded, three-dimensional person who was very much on a personal and professional upswing when an accidental overdose of heroin caused her premature death in October 1970.

A graduate of Harvard and a musician himself, Cooke’s first encounter with Joplin came in 1967 at the Monterey International Pop Festival, where he was on the crew of documentary filmmaker D.A. Pennebaker. Joplin and her band, Big Brother and the Holding Co., were not widely known outside of San Francisco, but her performance electrified the audience and, once the film was released, the rest of the world.

Cooke became Joplin’s road manager after Big Brother signed with Albert Grossman, also manager of Bob Dylan, The Band and Peter, Paul and Mary. Cooke continued with Joplin after she left Big Brother and was with her for her only European tour, her 1969 performance at Woodstock, with the Kozmic Blues Band, and the famed Festival Express train tour across Canada in the summer of 1970 with her last band, Full Tilt Boogie.

During his Barnes & Noble visit, Cooke will talk about Joplin, read from his book, and show a film that he shot on the road while touring with Janis and Big Brother. Copies of Cooke's book will be available and Cooke will sign them after his talk.

Some basic math on the Affordable Care Act

How were you at math word problems in school? This one ought to be easy enough.

A school district has 1,000 full-time employees and spends $4,800 a year on each of them for group health insurance. If the school district doesn’t pay for this insurance, it faces an annual fine of $3,000 per employee. How much can the school district save each year by dropping its group health insurance?

Brian McKellar

The answer is $1,800 per employee. Multiply that by 1,000 and you have $1.8 million in savings.

Idaho School districts are some of the largest employers in the state, yet Idaho pays schoolteachers some of the lowest salaries in the nation, starting at $31,248.00 and capping at $57,782 after 25 years of service. Although it’s exciting that there is a plan to raise teachers’ base salary to $40,000 over the next five years, according to a study done in 2013 a family of four in Bonneville Country requires $54,939 to “get by.”

Unless both parents work, Idaho teachers still have to struggle to make ends meet. In fact, I personally don’t know any teacher whose spouse also doesn’t work.

Wouldn’t it be great if somehow we could put some extra cash in their wallets?

The Affordable Care Act stipulates that any company with more than 100 employees is required to offer health insurance. If it doesn’t, it faces a maximum penalty of $3,000 per employee. But based on the clients who have approached us, school districts are paying much more than that simply to cover their employees. Incredible as it sounds, by dropping group health coverage, even with the $3,000 maximum penalty figured in, some school districts could easily save more than a million dollars and give every teacher a raise.

This doesn’t even address coverage for families. Many school districts contribute $0 towards family health insurance, and some teachers are paying more than $600 a month on their school group plans.

The ACA has made it easier than ever for people to qualify for inexpensive health coverage. A family of four in Bonneville County earning $54,939 (the “get by” number from above) would qualify for a $380 monthly tax credit, making the price of the second lowest silver-level exchange plan $336.82 a month.

Do the math. Show your work. Class dismissed.

Brian McKellar is an independent agent with McKellar Insurance and a member of the Square One business development group.