Top 5 Misclassified Workers Comp Codes

workers comp codes

NCCI

https://www.ncci.com/Articles/Pages/UW_2015ClassInspectionProgramUpdate.aspx

8810—Clerical Office Employees NOC

8742—Salespersons or Collectors—Outside

9015—Building or Property Management—All Other Employees

8601—Architectural or Engineering Firm—Including Salespersons & Drivers

5191—Office Machine Installation, Inspection, Adjustment, or Repair

https://www.ncci.com/Articles/Pages/UW_2017-Class-Inspection-Program-Top-Reclassified-Code.aspx

Code 9015—Current Classification Information

According to NCCI’s Classification Inspection Program Update, the top five misclassified codes are:

1. 8017: Store – Retail NOC
   • Reclassified to:
     • 8010: Store – Hardware
     • 8018: Store – Wholesale – NOC
     • 8008: Store – Clothing, Wearing Apparel, or Dry Goods – Retail
     • 8044: Store – Furniture and Drivers
     • 9083: Restaurant – Fast Food
2. 8018: Store – Wholesale – NOC
   • Reclassified to:
     • 8010: Store – Hardware
     • 8032: Store – Clothing, Wearing Apparel, or Dry Goods -Wholesale
     • 8017: Store – Retail NOC
     • 8232: Building Material Dealer – New Materials Only – All Other Employees & Yard, Warehouse, Drivers
     • 8046: Store – Automobile Parts and Accessories NOC & Drivers
3. 8010: Store – Hardware
   • Reclassified to:
     • 8018—Store—Wholesale—NOC
     • 8017—Store—Retail NOC
     • 8058—Building Material Dealer—New Materials Only—Store Employees
     • 8046—Store—Automobile Parts and Accessories NOC & Drivers
     • 8111—Plumbers’ Supplies Dealer & Drivers
4. 8044: Store – Furniture and Drivers
   • Reclassified to:
     • 8017: Store—Retail NOC
     • 8018: Store—Wholesale—NOC
     • 8010: Store—Hardware
     • 9519: Household and Commercial Appliances—Electrical—Installation, Service, or Repair & Drivers
     • 8235: Sash, Door, or Assembled Millwork Dealer & Drivers
5. 8046: Store – Automobile Parts and Accessories NOC & Drivers
   • Reclassified to:
     • 8380: Automobile Service or Repair Center and Drivers
     • 8018: Store – Wholesale – NOC
     • 8010: Store – Hardware
     • 8391: Automobile Repair Shop and Parts Department Employees, Drivers
     • 3821: Automobile Recycling and Drivers

Summary of Commonly Misclassified Codes

Store operations are supposed to be classified based on the principal type of merchandise sold (Meaning more than 50% of gross receipts), and whether those sales are retail or wholesale.

Retail codes apply to the sale of merchandise to the general public for personal or household consumption, not for resale, and not business-to-business. Wholesale applies to the sale of merchandise to businesses that will resale to others (Business-to-business), not for direct personal or household consumption.

Specific reasons for the reclassification of these codes include:

• Code 8017: Store – Retail NOC
  • The biggest reason why this code was reclassified was because the gross receipts exceeded 50% for one type of product sold. For example, a company might have been classified as 8017 because they are a retail store that sells multiple products. However, if more than 50% of the company’s sales were for clothing, the proper classification would be 8008: Clothing, Waring Apparel, or Dry Goods – Retail. Likewise, if furniture sales had exceeded 50% of the company’s gross receipts, then code 8044: Store – Furniture and Drivers would have been applicable.
• Code 8018: Store – Wholesale NOC
  • Same as with code 8017, the main reason why this code was reclassified was due to the fact that gross receipts exceeded 50% for a specific type of product.
• Code 8010: Store – Hardware
  • This classification was often reclassified to 8111 (Store – Plumbers’ Supplies Dealer) or 8046 (Auto Parts and Accessories). When more than 50% of gross receipts were for plumbing supplies or auto parts, they would be reclassified accordingly.
• Code 8046: Store – Automobile Parts and Accessories NOC and Drivers
  • This code was commonly reclassified to 8380 (Automobile Service or Repair Center). The main difference being whether or not the primary operations were servicing cars or working on cars. It is not uncommon for companies in this industry to both service cars and sell auto parts and accessories. The deciding factor is which function is the predominant operation for the company.