I have more than one basic classification assigned to my business and I have workers who work in more than one of these classifications. Can I divide their hours between these basic classifications on my quarterly report?
Yes, you may divide a worker's hours between basic classifications when:
The classification descriptions allow a division of hours; and
You maintain records from which the department can determine the hours the worker worked in each classification.
If the classification descriptions do not allow a division of hours, or if you fail to maintain adequate records, you must report the workers' hours in the highest rated risk classification applicable to your business, unless you can establish that the worker did not work in that classification. Example:
An employer has the risk classifications and rates shown below:
|Risk Class ||Description ||Rate |
|0507 05 ||Roofing work ||5.1370 || |
|0510 00 ||Wood frame building construction ||2.9554 || |
|0513 00 ||Interior finish carpentry ||1.3821 || |
If the employer did not maintain records showing in which classes a worker worked, all of the worker's hours must be reported in class 0507.
If the employer had records that showed the worker only worked in classifications 0510 and 0513, but no further detail, all of the worker's hours must be reported in classification 0510.
If the employer had records that showed the hours the worker worked in classification 0510 and the hours the worker worked in 0513, the employer may report the worker's hours in both classes. I have employees with duties that support more than one basic classification, but I am unable to distinguish their hours between classifications. In what classification(s) do I report these workers' hours?
Sometimes employers are unable to divide a worker's hours between two or more classifications because the same work is incidental to more than one classification. You must report these hours in your governing classification. See "What is my governing classification?"
What is incidental work?
Incidental work is any work, unless specifically excluded, that supports the operations described in your classification description(s), but takes place away from where the product or service is produced. For example:
There is no incidental work:
At the construction site if the employer is the builder;
At the assembly facility if the employer is the manufacturer;
In the emergency room if the employer is the hospital;
In the kitchen, if the employer is in the restaurant.
Incidental work may include:
Laundry workers employed by but not working at a hotel;
Warehouse workers employed by but not working at a retail store;
A technical support team working for but not at a wholesale distributor;
Pick-up or delivery work;
Travel time. What is my governing classification?
Your governing classification is the risk classification that describes what we consider your principal business. It is the basic classification assigned to your business with the largest number of worker hours/units reported in the experience rating period as defined by WAC 296-17-850
(2). If you're not sure which classification is your governing classification, you should contact your account manager or refer to the expected loss summary in your current experience rating calculation.
If you're a new business and/or a business not experience rated, a provisional governing classification may be approved by your account manager. The following exception classifications cannot be considered governing classifications:
7101 Example 1:
You operate both a motel with classification 4905, and a restaurant with classification 3905. You have an off-site laundry facility that cleans the linens for both the restaurant and for the motel.
In the sample 2009 expected loss summary shown below, the governing classification is the restaurant classification 3905 with a total of 108,199 units.
You must report all the laundry worker hours in your governing classification. Expected Loss Summary
|Class ||Fiscal Year ||Employee Units ||Expected Loss Rate ||Expected Losses ||Primary Ratio ||Expected Primary Losses |
| || || || || || || |
|4905 || ||2005 || ||10,571 || ||.4288 || ||4,532.84 || ||.5790 || ||2,624.51 || |
|4905 || ||2006 || ||12,437 || ||.3982 || ||4,952.41 || ||.5790 || ||2,867.45 || |
|4905 || ||2007 || ||14,676 || ||.3516 || ||5,160.08 || ||.5790 || ||2,987.69 || |
|Class Total ||37,684 || || ||14,645.33 || || ||8,479.65 || |
| || || || || || || |
|3905 || ||2005 || ||24,701 || ||.1539 || ||3,801.48 || ||.5980 || ||2,273.29 || |
|3905 || ||2006 || ||35,825 || ||.1445 || ||5,176.71 || ||.5980 || ||3,095.67 || |
|3905 || ||2007 || ||47,673 || ||.1290 || ||6,149.82 || ||.5980 || ||3,677.59 || |
|Class Total ||108,199 || || ||15,128.01 || || ||9,046.55 || |
You are a cabinet manufacturer who also offers installation services to your customers. Your manufacturing operations are under classification 2907 and your employees performing the installation service are under classification 0513. Your expected loss summary confirms you report more hours for manufacturing work in classification 2907 than for installation work in classification 0513. You must report all the delivery work in classification 2907. Example 3:
You have a floor covering store and also offer installation services to your customers. Your store operations are under classification 6309 and your employees performing the installation service are under classification 0502. Your expected loss summary confirms you report more hours for installation work in classification 0502 than for store operations in classification 6309. You must report all the delivery work in class 0502.
[Statutory Authority: RCW 51.04.020, 51.16.035, and 51.16.100. 12-11-109, § 296-17-310171, filed 5/22/12, effective 7/1/12. Statutory Authority: RCW 51.16.035 and 51.04.020. 10-10-108, § 296-17-310171, filed 5/4/10, effective 7/1/10.]