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Special Bulletin - May, 2016

RBF Special Bulletins bring you important tax, business and financial news between regularly-scheduled issues of RBF News.  Here's an important matter we think you should know about.

For contractors, new Mass. WC rates vary widely
Last month's announcement that workers compensation rates in Massachusetts would be going up by an average of only 1.5% on July 1, 2016 had business owners breathing an early sigh of relief. 

But a closer look behind the headlines reveals a wide discrepancy of rate changes across industries (from 18% reductions to 17.5% increases) and even large swings among job classifications within specific industries themselves.
Take the construction industry for example. As our colleague Mark Kingston at Eastern Insurance points out, come July 1st the carpentry rate (code 5403) will change from $9.86 to $11.00, an 11.6% increase.  The executive supervisor rate (code 5606) will change from $1.66 to $1.87, a 12.7% increase
Meanwhile, the roofing/flat rate (code 5547) will decrease from $15.85 to $13.68, a 13.7% reduction, while the roofing/pitched rate (code 5545) will increase from $31.79 to $37.05, a 16.5% jump.  "The construction codes contain some of the largest rate swings of all the job classifications," Mark says.

What it means to you and your company
It's no secret that bidding on projects is hard work. But when WC costs change this dramatically it can have a significant impact on costs, overhead and your company's ability to turn a profit.
If you'd like to know more about how these new rates will impact your future costs, we will gladly connect you with Mark and the experts at Eastern Insurance. With the many different rate changes that are due to take effect on July 1st, the time to act is now.

Related content from the RBF archives:
  • Understanding the variables of successful bidding: Part 1
  • Understanding the variables of successful bidding: Part 2
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 RBF is the New England-area affiliate of Russell Bedford International, a leading global network of independent accounting and business consulting firms.