Classifying Workers Comp Class Codes: Why to Get It Right

Caroline VegaNY Class Codes

New York class codes for workers comp

Because every workers comp classification code is assigned based on exposure risk, getting them right can make the difference to your business. That’s because class codes directly affect your workers comp insurance pricing.

Use the wrong class code, and you will either pay too much or too little for your coverage. A wrong classification could wind up costing you thousands especially if you report payroll in a more expensive class code. The same applies if you use a less expensive classification. For instance, if you pay a clerical rate (usually much lower) for a more expensive exposure, you will owe plenty at the end of your coverage period.

Understanding the workers comp class code system and how employee work tasks fall within the categories based on the work they perform can keep you from overpaying (or underpaying) during the course of your policy year.

New York Workers Comp Class Codes for Construction Companies & Contractors

New York and New Jersey construction companies, in particular, can be gravely affected by the wrong class code assignments.

If contractors don’t break out their payroll records separately by employee, all their payroll will be classfied under the highest-rated classficiations based on the work or location where their operations are performed. That means even clerical workers can be assigned the higher construction class rates.

Don’t wait until audit time to review your class code records. You definitely don’t want to owe a large bill due to not separating your payroll and/or misclassifying your workers.

Review New York class codes by visiting the New York Compensation Insurance Rating Board site here.

Find the New Jersey workers comp class codes on the New Jersey Insurance Rating Bureau site.