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Add worker classification and SOC codes

Learn how SOC codes, workers’ comp codes, and ACA worker classifications affect reporting, insurance costs, and compliance.

Updated over a month ago

This article explains key job and worker classifications used in payroll and compliance.

You’ll learn about Standard Occupational Classification (SOC) codes, which categorize jobs for government reporting and can influence workers’ compensation rates. It also covers workers’ compensation codes, which determine insurance costs based on job risk, and worker classifications under the Affordable Care Act (ACA), which define eligibility for health benefits.

Accurate classification is essential to avoid overpaying for insurance or facing compliance penalties.

To assign an SOC or Workers Comp Code to an employee, go to their Profile › Job and Pay tab › Employment details section.

Update an employee's SOC code

To update an employee’s SOC code, follow these steps:

  1. Accessing the employee's profile

    1. Go to Team View, then Team.

    2. Find the employee you want to assign a job to, then select their name to open their profile.

    3. Go to the Job and Pay tab, then scroll to the Employment details section.

    4. Select Edit.

  2. Editing employment information

    1. Enter the SOC code for this employee.
      ​If you're unsure which SOC code to use, check out the SOC Code Lookup Guide from the U.S. Bureau of Labor Statistics.

    2. Select Save.

Updating SOC code

Update an employee's classification (employee type)

Classifying employees correctly under the Affordable Care Act (ACA) is necessary for managing benefits and avoiding penalties. Here's a breakdown of employee types under the ACA:

Full-time employees

  • Definition: Employees who work an average of 30 hours or more per week or 130 hours or more per month

  • ACA Requirement: Must be offered health insurance coverage that meets minimum value and affordability standards

Part-Time Employees

  • Definition: Employees who work fewer than 30 hours per week on average

  • ACA Requirement: Not required to be offered health insurance coverage under the employer mandate, but their hours still count towards the determination of whether the employer is an Applicable Large Employer (ALE)

Seasonal Employees

  • Definition: Employees hired into a position for which the customary annual employment is six months or less

  • ACA Requirement: Employers are not required to offer coverage to seasonal employees, but their hours may affect ALE status

Variable Hour Employees

  • Definition: Employees for whom, at the start of employment, it cannot be determined whether they will work 30 hours per week on average

  • ACA Requirement: Employers may use a look-back measurement period to determine if these employees are full-time and therefore must be offered coverage

Temporary Employees

  • Definition: Employees hired for a temporary period, often through a staffing agency

  • ACA Requirement: If hired directly by the company and working full-time, they must be offered coverage. If hired through a staffing agency, the responsibility to provide coverage may depend on the terms of the staffing agreement

To update an employee’s type, follow these steps:

  1. Accessing the employee's profile

    1. Go to Team View, then Team.

    2. Find the employee you want to assign a job to, then select their name to open their profile.

    3. Go to the Job and Pay tab, then scroll to the Employment details section.

    4. Select Edit.

  2. Editing employment information

    1. Choose the employee's type.

    2. Select Save

Updating Employee Type

Update an employee's worker compensation code

A Workers' Compensation Code (often called a Workers' Comp Code) is a classification used by insurance companies to categorize jobs based on the level of risk they carry. These codes, standardized by the National Council on Compensation Insurance (NCCI) or state-specific agencies, are essential for determining workers' compensation insurance premiums.

Assigning the correct code is critical for accurate insurance premiums, compliance with state regulations, and proper payroll processing. It helps ensure that employers are charged appropriately for insurance coverage based on the risks associated with each job role and prevents issues during audits or claims.

  1. Accessing the employee's profile

    1. Go to Team View, then Team.

    2. Find the employee you want to assign a job to, then select their name to open their profile.

    3. Go to the Job and Pay tab, then scroll to the Employment details section.

    4. Select Edit.

  2. Editing employment information

    1. Enter the workers comp code for this employee.

    2. Select Save.

Updating Workers Comp Code

Update an employee's H-2A Visa status

If your company employs temporary agricultural workers under the H-2A visa program, you must specify their visa status in Workstream Payroll to ensure correct tax withholdings and compliance with federal regulations. This option is only available if your company is set up as an agricultural business in Workstream.

If the H-2A Visa status is a required field for payroll setup, it will appear as an employee setup issue. Follow the steps below to update an employee’s visa status.

  1. In Team View, go to Team.

  2. In the Action Required section, filter the list to find employees with setup issues, or locate a specific employee and select the issue badge next to their name.
    ​

    H2A Visa Setup Issue for Unified Team Tab Version

  3. In the issue details, look for the H-2A Visa status field.

  4. Enter or update the required information.

  5. Select Save to apply the changes.

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