What is the Classification Tab

The Classification Tab is designed to correctly assign the Mod File for Benchmarking and Benchmarking Reports.  

The following logic applies to the Mod Files when determining the Governing State and Governing Payroll Code.

The Governing State logic will calculate the sum of all payroll by state. The state with the highest payroll is the governing state.

The Governing Payroll Code will sum all payroll by class code. Then we exclude the five common standard exception class codes which are: 

• 8810 (Clerical Office Employees)
• 8871 (Clerical Telecommuter Employees)
• 8742 (Salespersons - Outside)
• 7380 (Drivers, Chauffeurs, Messengers)
• 7830 (Drivers, Chauffeurs, and Their Helpers)

The sum of the remaining payroll codes is calculated. The code with the highest payroll is the Governing Payroll Code.

If the file only contains one or a combination of the standard exception codes, then the payroll code with the highest payroll will be the Governing Payroll Code.

 

The corresponding payroll code will be matched to the corresponding 3 digit NAICS Code.

For a complete view of how payroll codes are matched to NAICS Code, please reference the Classification section in the menu on the left.

Here is a video.