In our previous post about the importance of using the right workers comp class codes in New York, we promised a look at three codes that store and warehouse owners often use interchangeably. However, it’s vital that we take a little closer look to see how they differ to make sure that you report payroll in the right one.
The wholesale store class code 8018 is often confused with the warehousing one, 8292. But once you understand the clear distinction between the two, it will make more sense why some employees fit in 8018 and others in 8292.
Store Workers Comp Class Codes in NY, NJ & PA
Here’s a short definition of both:
8018 Store – Wholesale applies to policy insureds that sell general merchandise at wholesale prices. This includes such items as groceries, toys, soft drinks, computers and books. It also applies to retail mail order along with inventory maintenance, assembling and sorting as well as break down & repackage of bulk quantity items. Outside sales promotion for the wholesaler is also included in this class.
8292 – Warehousing involves the storage or “warehousing” of general merchandise along with the maintenance and care of the building and equipment.
Notice that there are two types of operations going on between these two class codes. The store class code may have their goods stored on their property the same as the warehousing class code. But, the difference lies in who has interest in the merchandise goods.
A company that owns and stores goods in their own warehouse is operating on their own behalf as a wholesale store. This operation would be classified under 8018.
However, when a company maintains a warehouse filled with goods or merchandise owned by others, they are storing those goods and do not have equity interest in them. Therefore, this type of operation would be classified as 8292 – warehousing.
There is one other classification that is sometimes confused with 8292 warehousing. That is 7360 – Freight Handling. The way to determine which class code to use between 8292 and 7360 is to review the amount of time that the merchandise will be stored. Warehouse companies usually store merchandise for long periods; whereas, freight handling companies move merchandise in and out of the warehouse. Usually, companies with “logistics” in their business description will use the 7360 class code.
If you have any questions about whether your company is correctly classified, please do not hesitate to give us a call. We’ll review your policy for accuracy and make sure you are paying the right premiums for your payroll.