8810 and 8742 Cannot Interchange Duties

Review has come across audits where the auditor is including employees under 8810 or 8742 and another class code. You “cannot” separate an employee’s payroll between 8810 or 8742 and any other class code. Both 8810 and 8742 are “all or none” class codes, meaning, if an office employee does any type of work, other than just office work, they cannot be classified under 8810 and another code at the same time, all of their wages would have to be classified under the higher rated class code. This goes the same for 8742, if a salesperson does sales and also works in the warehouse or delivers product, all of their wages would have to go into the higher rated class code.

The only time you can place an employee into 8810/8742 and some other class on the same

worksheet , is if that employee stopped working in one area and started working in another area. At the date they made the change, you could separate their wages at that time. Below are some examples:

Example 1- John Smith works in the office 90% of the time handling bookkeeping and date entry, but 10% of his time he’s in the warehouse helping with shipping. In this example, none of John’s payroll would go into 8810, all would go into the class code that covers the warehouse employees.

Example 2- Joe Smith, was a delivery driver from 1/1-6/30/15 and then moved to an outside salesperson on 7/1/15. At that time, Joe, no longer delivered product, but just went out for sales purposes only. In this example, Joe Smith would be included in the governing class code from 1/1-6/30/15 and then moved to 8742 from 7/1-12/31/15.

If an employee spends more than 5% of their time doing work other than clerical office (8810) or outside sales (8742), they have to go into the governing class code.

If the insured feels an employee that interchange duties between office/sales and any other type of work, include what % of employee’s time is spent doing office/sales work compared to the other type of work they are performing. By doing this, you can justify to the carrier why you’re moving an office/sales employee from 8810/8742 to the governing or another class code.