California Workers' Compensation Class Codes Explained
California workers' compensation class codes are standardized numbers assigned by the WCIRB that categorize work by hazard, each with a base rate per $100 of payroll. Correct classification is essential to accurate pricing and audit results.
Key Takeaways
- Class codes categorize work by hazard and carry a base rate per $100 payroll.
- Codes are assigned by the WCIRB in California.
- A business may have multiple codes for different operations.
- Correct classification prevents overpayment and audit surprises.
What Are Class Codes?
Class codes are three- or four-digit numbers that group businesses by the type of work performed and its hazard level. Each code has a base rate per $100 of payroll used to help calculate premium. The WCIRB administers California class codes.
How Class Codes Affect Premium
Because premium is payroll per $100 times the class-code rate, the code directly drives cost. High-hazard codes like roofing carry much higher rates than clerical codes.
Multiple Class Codes
Businesses with distinct operations may have several codes, each applied to the relevant payroll. Accurate timekeeping by operation keeps classification correct and audits clean.
Frequently Asked Questions
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