Workers Comp Code 9015 Building Or Property Management - All Other Employees
NCCI's #1 most reclassified code of 2017, work comp class code 9015 (Building Or Property Management - All Other Employees) makes the NCCI list of most confusing codes every year. It was #8 on the NCCI top 10 list in 2020 (below).
Workers comp code 9015 Building Or Property Management - All Other Employees is a class code that should be reviewed if it is on your work comp policy.
Work Comp Code 9015 could represent a significant cost-saving opportunity for you.
Some of the workers comp codes that are frequently misclassified should be in higher rated (more expensive) class codes. In other words employers are coming out ahead and saving money.
But, not class code 9015. It is frequently misclassified in the other direction; employers are overcharged.
9015 Class Code most commonly misapplied in place of lower rated (less expensive) class codes.
According to the NCCI description of workers comp code 9015, it applies to the care, custody, and maintenance of premises or facilities. Numerous activities and circumstances can influence the application of class code 9015. For example:
Does the owner or lessee of a building occupy the entire or principal portion of the premises for manufacturing or mercantile purposes?
Is there maintenance or repair work at any location where the owner or lessee does not also perform janitorial services?
Do the property management employees work for a business whose governing class code is a Standard Exception classification such as Class Code 8810; Clerical Office Empolyees?
Is the ordinary maintenance and repair of a building performed by regular employees of the business?
Does the business employ painters, plumbers, electricians, carpenters, doormen, security desk personnel, elevator operators, gatekeepers, or concierges?
The 9015 Workers Comp Code Rate Is Significantly More Expensive
NCCI tells us that the workers comp code 9015 if one of the most reclassified codes in their Scopes Manual. AND, when it is applied incorrectly it most is most commonly misapplied in place of classification code 9012.
Missouri publishes annually a list of the average rate* for every class code. The difference between 9015 and 9012 is substantial. In 2021 the average rate for workers comp code 9015 was $4.03 while the rate for classification code 9012 was $1.05; a difference of $2.98. So, for every $100,000 in payroll misclassified as 9015 rather than 9012, employers are overcharged $2,980; 3% additional premium!
* Here is a link to the Missouri rates for 2021. This table is referred to as "self-insured rates." In Missouri the Department of Insurance averages the rates charged by the top 20 insurance carriers and publishes them for work comp self-insurers. Even though these employers self insure, they need to calculate what they would have paid were they purchasing their insurance in the voluntary market like you. This is so taxes can be assessed and paid at the same rate for all employers.
Class Code 9015 confusion can exist between it and other class codes
And, there's confusion in combination with multiple classifications. Here are a few which are frequently considered alongside class code 9015:
Class Code 9012 – Building or Property Management
Class Code 9060 – Club—Country, Golf, Fishing or Yacht
Class Code 8855 – Banks and Trust Companies
Class Code 8723 – Insurance Companies
Class Code 9052 – Hotel
The rationale for the application of class code 9015 should be spelled out in Description Of Operations in your Auditor's Worksheets. Any reclassification that occurs should similarly be explained in this document (as I stated on our 8810 web page).
Even if you have no dispute, it's a good idea to request and review these after your annual audit to examine all auditor notes about class code 9015. And, FYI, your broker will not do this for you. Even if a broker is a qualified payroll auditor (none are), your insurance company will not send your broker Auditor's Worksheets. They will only send them to you due to the confidential nature of the payroll information contained. You may then forward on to anyone whose consultation you engage, of course.
Even if your audit was a phone audit or completely performed using software, the auditor will (should) input class code 9015 explanations. You may find those in the miscellaneous notes section.
If you suspect your employees are misclassified or that your insurance carrier reclassified employees in error (be it class code 9015 or another), please consider allowing us to review your program to determine whether or not to initiate an audit dispute.
Please call or email us to discuss your unique circumstances and potentially help your company, even for issues as old as 4 three years ago!. These issues will continue to impact your work comp program and cost unnecessarily high premiums indefinitely. So, let us know if you feel there are any issues related to class code 9015 that need an expert review. We WILL help you!
Also, it would be a good idea to take a look at our warning signs and reach out if you'd like assistance for any other reason.
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