Don’t Overpay on NY Workers Compensation Class Codes

Caroline VegaNY Class Codes0 Comments

NY Workers Compensation class codes

We talk a lot about NY workers compensation class codes here, and for good reason. Correctly assigning your workers to the right payroll classification code is a vital part of doing business. Any type of misclassification, and you could be out thousands of dollars either by overpayment or underpayment.

There’s nothing worse than placing an employee’s payroll in the wrong class code for an entire year, and then learning (sometimes after an unexpected payroll audit), that you now owe a huge bill for the error.

What could be worse than that? Well, maybe finding out that you’ve been paying an extra $1,000 a month in workers comp premiums…all because you incorrectly calculated an employee’s salary in a class code with a much higher rate. Sometimes that overpayment can take months to sort out.

These two payment scenarios really drive home the point that correct classification of your employees in the right category is so important to your bottom line.
When we do a policy review and offer a free workers comp insurance quote on your business operations, we help you analyze your present workers compensation policy to ensure that you are using the right payroll class codes.

But if you’ve had your policy for any length of time, sometimes it happens that you may need a class code change. This may be due to overall changes in classification by the state whereby they add or eliminate a specific class code. And, it can also occur when you have an employee that receives a promotion or changes positions so that their duties differ enough that they must be re-classified into a new code.

And then of course, there are commonly-confused class codes that just need a little closer look to make sure that an employer is using them correctly. Next in this class code series, we’ll be discussing 3 class codes that employers often use incorrectly when assigning their employees to specific tasks:

8018: Store – Wholesale
8292: Warehousing and
7360: Freight Handling

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