Classification Codes 8810 and 8742
My posts on Classification Codes 8810 and 8742 seem to generate the most interest of the whole blog. I have posted on them often. They both are referred to as Standard Exception Codes. They differ greatly from your company’s Governing Class Code.
I had posted previously on the premium auditors all knowing that companies tend to try to put every employee into those classifications to save money. That is one of the first figures a premium auditor will examine is what payroll is allocated to any of the Standard Exception codes. They especially look very hard at Class Codes 8810 and 8742.
One of the trends to watch for in your premium audits and associated billing is when employees are moved from one Standard Exception Code to another Standard Exception Code that results in a higher premium owed figure. That may not seem much of a difference on paper. However, some of the alternate Standard Exception Codes can result in up to a 76% increase in premiums for certain employees.
I will cover the new Standard Exceptions codes in an upcoming post. My best advice now is to make sure that your job descriptions are very thorough. I would not leave any questions on the job duties of especially your clerical employees.
Related: What is Misclassification in Workers’ Compensation?
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