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What are workers compensation class codes? | Class Codes
 
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What are workers compensation class codes? This video explains the following: 1.)What are workers compensation class codes? Workers’ compensation class codes are codes that the insurance companies use to identify specific categories of work. For instance, you may know the job duties of a contractor by their job title. However, the insurance company knows them as “5606”. 2.) What is workers’ compensation insurance? Workers' compensation is a form of insurance that provides compensation to employees who suffer job-related injuries and illnesses. In exchange for the possession of workers’ compensation insurance, the state offers a legal surrender of the employee's right to sue his or her employer for the tort of negligence. 3.) Why do insurance companies use workers’ compensation class codes? Insurance companies need to be able to categorize various types of work into “class codes” to determine workers compensation rates, coverages, and exclusions. For example, a 5606  (Contractor) will have a more expensive workers’ compensation rate than an 8810 (Clerical) employee, because more dangerous work is being performed. 4.) How is workers’ compensation insurance charged? Insurance companies assign a unique rate to each client based on the applicable class code, the experience and loss history of the business, amount of employees and payroll, and other factors. The rate is charged as a percentage of payroll applied to the taxable wages paid to employees. For example, a road construction company might have nine employees that are classified as 5506. Let’s say those employees have a workers' compensation rate of $12 per 100. That means that for every $100 of taxable wages paid to those employees, the employer is charged $12 for workers compensation insurance. That same company has one 8810 (Clerical) employee. The 8810 employee has a rate of $0.15 per 100. That means that for every $100 of taxable wages paid to that employee, the employer is charged $0.15 for workers’ compensation insurance. 5.) Why is it important to be correctly classified? In the event of an audit (Or injury that leads to an audit), the carrier may determine that employees were incorrectly classified. If so, the insurance company can retroactively bill the client for up to three years of premium that has been incorrectly classified. If employees are misclassified, the claim frequency and loss ratios will be out-of-line with the norm for that class code. Insurance companies use statisticians to keep track of unusual loss patterns and payroll ratios. They will figure it out eventually, possibly resulting in the outcome from bullet point above. Being incorrectly classified can cause insured’s to get dropped by their carrier. Getting dropped puts companies in a frantic rush to find new coverage, meanwhile, the income-producing functions of the business must come to a halt. When a business then tries to get insurance from another carrier, the first question the new insurance company will ask is “Have you recently been dropped or denied coverage?” If this is true, the insurance company will most likely either refuse to quote or markup the rate due to the increased risk. As a business, the best way to save money on workers’ compensation insurance is to build a long, trusting relationship with the carrier. 6.) Why do some states have different class codes for the same type of work? The rules and regulations for workers’ compensation are unique for every state. Most states utilize the NCCI class code system. With states that use NCCI workers’ compensation class codes, the classifications remain almost entirely the same for each of those states (Except for state specials). However, some states do remain independent, or monopolistic. 7.) How to use the NCCI State Reference Guide To see the governing authority for the workers’ compensation class code list of any US state, you can visit the “NCCI State Reference Guide”. After selecting a state from the drop-down menu, the “State Jurisdiction” row will tell you the name of the organization overseeing the classification system. Additionally, the “Policy Data” row will tell you the organization that is in charge of reporting statistical data for their correlating workers’ compensation “Statistical Plan.” 8.) What is the National Council on Compensation Insurance (NCCI)? NCCI is an independent advisory organization that is primarily funded by insurance companies. Most insurance companies use NCCI for various services, such as collecting and analyzing statistical data for workers’ compensation rates. 9.) What is the NCCI Scopes Manual? The NCCI Scopes Manual is used by insurance professionals (Such as underwriters) to identify the class code associated with each type of occupational work. 10.) How to view a free online index of workers’ compensation codes by state. You can view the correlating article for this video at: https://classcodes.com/workers-compensation-class-codes/
Views: 13132 Class Codes
What are general liability class codes? | Class Codes
 
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What are general liability class codes? General liability class codes are numbers that insurance companies use to group insureds into classifications. The rate for each classification reflects the hazards common to those insureds. The purpose of this classification process is to help underwriters match the risk of an insured with the appropriate premium. The most common classification system used by general liability insurance companies is created and maintained by the Insurance Services Office (Or ISO). The Insurance Services Office is a data management and predictive modeling service for insurance companies. The object of the classification procedure is to assign the one basic classification which best describes the business of the insured. Each of the classifications in the ISO manual include all the various types of operations found in the business. It should be remembered that it is the business which is classified, not individual employments, occupations or operations within a business. However, more than one classification assignment may be necessary for risks with multiple business operations. Therefore, it is necessary to determine whether the risk will be considered a single business operation enterprise or a multiple enterprise. Identifying the correct GL class code is essential to make sure that your business is sufficiently covered and quoted at the right rate. Companies in different industries are vulnerable to various types and degrees of risk. For example, a business consultant (ISO CGL Code 41677) is more susceptible to errors that might harm a client’s revenues... ...whereas a carpenter (ISO CGL Code 91340) is more prone to the risk of personal injury. Because each type of business has different liabilities, they require different classifications. You can purchase the ISO CGL guide at verisk.com. Keep in mind that it is not uncommon for insurance companies to use other classification systems such as the NAICS, SIC, or their own in-house system. You can view the article at: https://classcodes.com/general-liability-class-codes/
Views: 3745 Class Codes
Historical Background of NAICS | Class Codes
 
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NAICS Code Tutorial Series - The Historical Background of NAICS. This is the second video of a seven-part series designed to help viewers better understand the NAICS classification system. USER LINKS: (1/7) The Purpose of NAICS: https://www.youtube.com/watch?v=j0c0efVVVLU (2/7) Historical Background: https://www.youtube.com/watch?v=oJlMZM3LW7s (3/7) Development of NAICS: https://www.youtube.com/watch?v=xWkix70UJsI (4/7) Conceptual Framework of NAICS: https://www.youtube.com/watch?v=VQFA8CLX2Gw (5/7) Structure of NAICS: https://www.youtube.com/watch?v=v1JuEvYm_rI (6/7) Defining the "Establishment": https://www.youtube.com/watch?v=059pQaafAQk (7/7) Determining Industry Classification of the Establishment: https://www.youtube.com/watch?v=QKA6WaKTnc0 SCRIPT FOR THE HISTORICAL BACKGROUND OF NAICS Hello, and welcome to the NAICS Code Tutorial Series, by Class Codes. Today, we will be going over the historical background of the NAICS classification system. Over the years, there have been many industrial classification systems in North America. The Standard Industrial Classification system, Or SIC, traces its roots to the New Deal era when the Interdepartmental Committee on Industrial Classification was established in 1937 to develop a classification system. The Committee released its first classification of manufacturing industries in 1941, followed by a non-manufacturing classification in 1942. Revisions were made to the system in 1958, 1963, 1967, 1972, 1977, and 1987, which was the last version. These periodic changes were intended to keep pace with changes in the economy so that the system would recognize significant new categories and eliminate ones for trades that were nearly extinct. With inputs from data-gathering agencies such as the U.S. Census Bureau and the Bureau of Labor Statistics, the Office of Management and Budget oversaw the later revisions of the system. I would like to quickly add that if you have any questions regarding this video, please ask in the comment section below. And of course, like’s are very much appreciated! Moving on, The Standard Industrial Classification system (SIC) was initially developed to classify establishments by the type of activity in which they are primarily engaged and to promote the comparability of establishment data describing various facets of the U.S. economy. With the SIC classification system, the government was able to establish a more comprehensive and fully-integrated system of economic reporting. The SIC covers the entire field of economic activities by defining industries in accordance with the composition and structure of the economy. The 1948 SIC facilitated data comparability, by providing a framework of standard concepts, terminology, and groupings of industries. The introduction to the 1948 SIC manual stated that it was designed for the classification of the establishment, but a precise definition of “the establishment” was not provided. In the major revision of the SIC in 1960, the importance of the need for a standard unit of observation was emphasized by the provision of a standard definition of the establishment. The variables needed to assemble the "basic industrial statistics" for the analysis of the different sectors of the economy were specified, and the establishment became the smallest unit capable of reporting that set of variables. The 1970’s and 1980’s revisions continued to update the industry groupings to reflect changes in the industrial structure of the economy. The new editions created sector groupings that better drew together single and vertically-integrated companies engaged in the production of similar product groups. The Office of Management and Budget (OMB) last updated the SIC in 1987. It was customary to revise the SIC at ten-year intervals; however, by 1990 not all of the economic statistics programs had yet implemented the 1980 SIC manual. It was decided to postpone the revision and to take into account the statistical needs of the North American Free Trade Agreement signed in January 1994. The needs were met by developing NAICS, an industrial classification common to Canada, Mexico, and the United States. The first version, NAICS 1997, was released in March 1998. NAICS was revised for 2002 to achieve increased comparability among the three countries in selected areas and to identify additional industries for new and emerging activities. Additionally, in 2002, Industries were created for Internet services providers, web search portals, and Internet publishing and broadcasting. Changes to the North American economies continue to impact the classification systems. The NAICS classifications do not wait every 10 years to revise classifications, as did the SIC, but rather, continue to update the coding system every five years. As of the date of this video, the most recently published NAICS Classification Manual is 2017, with the next scheduled to be released in 2022.
Views: 21 Class Codes
The Purpose of NAICS | Class Codes
 
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NAICS Code Tutorial Series - The Purpose of NAICS. This is the first video of a seven-part series designed to help viewers better understand the NAICS classification system. USER LINKS: (1/7) The Purpose of NAICS: https://www.youtube.com/watch?v=j0c0efVVVLU (2/7) Historical Background: https://www.youtube.com/watch?v=oJlMZM3LW7s (3/7) Development of NAICS: https://www.youtube.com/watch?v=xWkix70UJsI (4/7) Conceptual Framework of NAICS: https://www.youtube.com/watch?v=VQFA8CLX2Gw (5/7) Structure of NAICS: https://www.youtube.com/watch?v=v1JuEvYm_rI (6/7) Defining the "Establishment": https://www.youtube.com/watch?v=059pQaafAQk (7/7) Determining Industry Classification of the Establishment: https://youtu.be/QKA6WaKTnc0 SCRIPT FOR THE PURPOSE OF NAICS Hello, and welcome to the NAICS Code Tutorial by Class Codes. This series is designed to help you become a NAICS code expert. Showing here is a list of all the videos in this series. We have provided links to all of these videos in the description below. Today, we’ll be going over the purpose of NAICS. So what is the purpose of NAICS? The North American Industry Classification System, or “NAICS,” is an industry classification system developed by the statistical agencies of Canada, Mexico, and the United States. Created against the background of the North American Free Trade Agreement, or NAFTA, it is designed to provide common definitions of the industrial structure of the three countries and a common statistical framework to facilitate the analysis of the three economies. NAICS is based on supply-side or production-oriented principles, to ensure that industrial data, classified to NAICS, are suitable for the analysis of production-related issues such as industrial performance. I would like to quickly add that if you have any questions regarding this video, please ask in the comment section below. And of course, “like’s” are very much appreciated! Economic statistics describe the behavior and activities of economic transactors and of the transactions that take place among them. The economic transactors for which NAICS is designed are businesses and other organizations engaged in the production of goods and services. They include farms, incorporated and unincorporated businesses and government business enterprises. NAICS is a comprehensive system encompassing all economic activities. It has a hierarchical structure. At the highest level, it divides the economy into 20 sectors. At lower levels, it further distinguishes the different economic activities in which businesses are engaged. NAICS is designed for the compilation of production statistics and, therefore, for the classification of data relating to establishments. It takes into account the specialization of activities generally found at the level of the producing units of businesses. The criteria used to group establishments into industries in NAICS are similarity of input structures, labor skills, and production processes. NAICS can also be used for classifying companies and enterprises. However, when NAICS is used in this way, the following caveat applies: NAICS has not been specially designed to take account the wide range of vertically- or horizontally-integrated activities of large and complex, multi-establishment companies and enterprises. Hence, there will be a few large and complex companies and enterprises whose activities may be spread over the different sectors of NAICS, in such a way that classifying them to one sector will misrepresent the range of their activities. However, in general, a larger proportion of the activities of each complex company and enterprise is more likely to fall within the sector, subsector and industry group levels of the classification than within the industry levels. Hence, the higher levels of the classification are more suitable for the classification of companies and enterprises than are the lower levels. It should also be kept in mind that when businesses are composed of establishments belonging to different NAICS industries, their company- and enterprise-level data will show a different industrial distribution when classified to NAICS, than will their establishment-level data, and the data will not be directly comparable. NAICS has been designed for statistical purposes. Government departments and agencies and other users that use it for administrative, legislative and other non-statistical purposes take responsibility for applying the classification in this manner. Thank you so much for watching! Now that you’ve learned about The Purpose of NAICS, you can continue your journey to become a NAICS code expert by watching the next video in this series, The Historical Background of NAICS.
Views: 46 Class Codes
What is NAICS Code 325611? | Class Codes
 
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https://classcodes.com/lookup/naics-code-325611/ What is NAICS Code 325611 Soap and Other Detergent Manufacturing This U.S. industry comprises establishments primarily engaged in manufacturing and packaging soaps and other detergents, such as laundry and dishwashing detergents; toothpaste gels and tooth powders; and natural glycerin. Cross-References. Establishments primarily engaged in-- • Manufacturing synthetic glycerin--are classified in U.S. Industry 325199, All Other Basic Organic Chemical Manufacturing; and • Manufacturing shampoos and shaving preparations--are classified in Industry 325620, Toilet Preparation Manufacturing.
Views: 6 Class Codes
What is NAICS Code 532411? | Class Codes
 
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https://classcodes.com/lookup/naics-code-532411/ What is NAICS Code 532411 Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing This U.S. industry comprises establishments primarily engaged in renting or leasing off-highway transportation equipment without operators, such as aircraft, railroad cars, steamships, or tugboats. Cross-References. Establishments primarily engaged in-- • Renting or leasing air, rail, highway, and water transportation equipment with operators--are classified in Sector 48-49, Transportation and Warehousing, based on their primary activity; • Renting pleasure boats--are classified in U.S. Industry 532284, Recreational Goods Rental; and • Renting or leasing automobiles or trucks without drivers--are classified in Industry Group 5321, Automotive Equipment Rental and Leasing.
Views: 6 Class Codes
The Structure of NAICS | Class Codes
 
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NAICS Code Tutorial Series - The Structure of NAICS. This is the fifth video of a seven-part series designed to help viewers better understand the NAICS classification system. USER LINKS: (1/7) The Purpose of NAICS: https://www.youtube.com/watch?v=j0c0efVVVLU (2/7) Historical Background: https://www.youtube.com/watch?v=oJlMZM3LW7s (3/7) Development of NAICS: https://www.youtube.com/watch?v=xWkix70UJsI (4/7) Conceptual Framework of NAICS: https://www.youtube.com/watch?v=VQFA8CLX2Gw (5/7) Structure of NAICS: https://www.youtube.com/watch?v=v1JuEvYm_rI (6/7) Defining the "Establishment": https://www.youtube.com/watch?v=059pQaafAQk (7/7) Determining Industry Classification of the Establishment: https://www.youtube.com/watch?v=QKA6WaKTnc0 SCRIPT FOR THE STRUCTURE OF NAICS: Hello, and welcome to the NAICS Code Tutorial Series by Class Codes. This series is designed to help you become a NAICS code expert. Showing here is a list of all the videos in this series. We have provided links to all of these videos in the description below. Today, we’ll be going over the structure of NAICS. The structure of NAICS is hierarchical. The numbering system that has been adopted is a six-digit code, of which the first five digits are used to describe the NAICS levels that will be used by the three countries to produce comparable data. The first two digits designate the sector, the third digit designates the subsector, the fourth digit designates the industry group and the fifth digit designates the industry. The sixth digit is used to designate national industries. A zero as the sixth digit indicates that there is no further national detail. NAICS agreements define the boundaries of the twenty sectors into which the classification divides the economies of the three countries. In general, the use of the same code across the three countries indicates that the class is comparable, even if the title is not identical because of differences in the use of language. NAICS with Canadian detail is designated NAICS Canada while NAICS with the United States’ and Mexico's own six-digit detail are designated NAICS United States and Sistema de Clasificación Industrial de América del Norte México, respectively. Comparability among the three countries is indicated by superscripts at the end of class titles. The abbreviation "CAN" indicates a Canadian-only class, "MEX" indicates that the Canadian and Mexican classes are comparable, and "US" indicates that the Canadian and United States classes are comparable. When no superscript appears, the Canadian, Mexican and United States classes are comparable. If you have any questions regarding this video, please ask in the comment section below. And of course, “like’s” are very much appreciated! Thank you so much for watching! Now that you’ve learned about The structure of NAICS, you can continue your journey to become a NAICS code expert by watching the next video in this series, Defining the “Establishment.”
Views: 20 Class Codes
What is NAICS Code 488490? | Class Codes
 
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https://classcodes.com/lookup/naics-code-488490/ What is NAICS Code 488490 Other Support Activities for Road Transportation This industry comprises establishments primarily engaged in providing services (except motor vehicle towing) to road network users. Cross-References. Establishments primarily engaged in-- • Providing automotive repair and maintenance--are classified in Industry Group 8111, Automotive Repair and Maintenance; • Providing towing services to motor vehicles--are classified in Industry 488410, Motor Vehicle Towing; • Providing a network for busing in combination with providing terminal services--are classified in Industry 485210, Interurban and Rural Bus Transportation; and • Providing a network for trucking in combination with providing terminal services--are classified in Subsector 484, Truck Transportation.
Views: 23 Class Codes
What is NAICS Code 541921? | Class Codes
 
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https://classcodes.com/lookup/naics-code-541921/ What is NAICS Code 541921 Photography Studios, Portrait This U.S. industry comprises establishments known as portrait studios primarily engaged in providing still, video, or digital portrait photography services. Cross-References. Establishments primarily engaged in-- • Producing film and videotape for commercial exhibition or sale--are classified in Industry 512110, Motion Picture and Video Production; • Developing still photographs--are classified in Industry 81292, Photofinishing; • Developing motion picture film--are classified in U.S. Industry 512199, Other Motion Picture and Video Industries; • Taking, developing, and selling artistic, news, or other types of photographs on a freelance basis, such as photojournalists--are classified in Industry 711510, Independent Artists, Writers, and Performers; and • Supplying and servicing automatic photography machines in places of business operated by others--are classified in Industry 812990, All Other Personal Services.
Views: 42 Class Codes
What is NAICS Code 112112? | Class Codes
 
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https://classcodes.com/lookup/naics-code-112112/ What is NAICS Code 112112? This U.S. industry comprises establishments primarily engaged in feeding cattle for fattening. Establishments primarily engaged in operating stockyards for transportation and not buying, selling, or auctioning livestock are classified in U.S. Industry 488999, All Other Support Activities for Transportation.
Views: 2 Class Codes
What is NAICS Code 336214? | Class Codes
 
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https://classcodes.com/lookup/naics-code-336214/ What is NAICS Code 336214? This U.S. industry comprises establishments primarily engaged in one or more of the following: (1) manufacturing travel trailers and campers designed to attach to motor vehicles; (2) manufacturing pick-up coaches (i.e., campers) and caps (i.e., covers) for mounting on pick-up trucks; and (3) manufacturing automobile, utility and light-truck trailers. Travel trailers do not have their own motor but are designed to be towed by a motor unit, such as an automobile or a light truck. Illustrative Examples: • Automobile transporter trailers, single car, manufacturing • Camper units, slide-in, for pick-up trucks, manufacturing • Camping trailers and chassis manufacturing • Horse trailers (except fifth-wheel-type) manufacturing • Pick-up canopies, caps, or covers manufacturing • Travel trailers, recreational, manufacturing • Utility trailers manufacturing Cross-References. • Establishments primarily engaged in making manufactured homes (i.e., mobile homes) designed to accept permanent water, sewer, and utility connections and equipped with wheels, but not intended for regular highway use, are classified in U.S. Industry 321991, Manufactured Home (Mobile Home) Manufacturing.
Views: 4 Class Codes
Introduction to the Workers Compensation Classification System
 
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USER LINKS: The Employer’s Workers Compensation Classification Guide: https://gumroad.com/l/workers-compensation-classification-guide VIDEO SCRIPT: Hello, and welcome to the Introduction to the Classification System. This video is an excerpt from "The Employer's Workers Compensation Classification System.", linked in the description below. The workers' compensation classification system was developed to provide an orderly method of grouping similar employers where each workers’ compensation class code would reflect job exposures that are common to insureds in their respective industry. Under the classification system, the business of the insured (the employer) is classified instead of each separate occupation within the company. Most business operations are classified into what is known as the governing classification. The governing classification is the single workers' compensation code that most accurately describes operations being performed by the insured. The classification assigned to an insured can greatly impact the cost an insurer pays for workers’ compensation premiums from the point of classification forward. The code will be essential in determining the premium rate and is used with the experience modifier (the company’s experience rating), and the insured’s payroll per $100. Payroll X Base Rate X Experience Modifier = Premium The workers' compensation classification system is different than the Standard Industrial Classification (SIC) and the North American Industry Classification System (NAICS). Many insurance professionals do not entirely understand all the nuances of the classification system. Employers tend to solely rely on the knowledge and expertise of their insurance agent. This is acceptable if you have an experienced and knowledgeable agent that truly understands the specifics and day-to-day operations of an insureds business. But many times, nobody knows the business of the insured better than the business owner, and there are many pitfalls that could be avoided if the business owner had a strong grasp of the classification process. The efforts of even the best insurance agent can be improved with the help of a knowledgeable and informed insured. Insurance underwriters are much savvier in catching classification mistakes that are costing them money. They continuously monitor their loss history with each client, searching for red flags that would indicate more dangerous work is being performed than is allowed by an assigned class code. However, they do not necessarily search for loss history that would suggest the insured is paying for higher risk than their exposure. Continue watching this series to learn more about the workers compensation classification system, and to equip yourself with knowledge that could help you avoid costly mistakes in the present and future. In the next video, we will learn about NCCI and the Scopes Manual. And of course, likes and follow's are very much appreciated!
Views: 17 Class Codes
What is NAICS Code 322291? | Class Codes
 
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https://classcodes.com/lookup/naics-code-322291/ What is NAICS Code 322291 Sanitary Paper Product Manufacturing This U.S. industry comprises establishments primarily engaged in converting purchased sanitary paper stock or wadding into sanitary paper products, such as facial tissues, handkerchiefs, table napkins, toilet paper, towels, disposable diapers, sanitary napkins, and tampons.
Views: 1 Class Codes
Determining Industry Classification of the Establishment | Class Codes
 
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NAICS Code Tutorial Series - Determining the NAICS Industry Classification of the “Establishment.” This is the final video of a seven-part series designed to help viewers better understand the NAICS classification system. USER LINKS: (1/7) The Purpose of NAICS: https://www.youtube.com/watch?v=j0c0efVVVLU (2/7) Historical Background: https://www.youtube.com/watch?v=oJlMZM3LW7s (3/7) Development of NAICS: https://www.youtube.com/watch?v=xWkix70UJsI (4/7) Conceptual Framework of NAICS: https://www.youtube.com/watch?v=VQFA8CLX2Gw (5/7) Structure of NAICS: https://www.youtube.com/watch?v=v1JuEvYm_rI (6/7) Defining the "Establishment": https://www.youtube.com/watch?v=059pQaafAQk (7/7) Determining Industry Classification of the Establishment: https://www.youtube.com/watch?v=QKA6WaKTnc0 SCRIPT FOR DETERMINING THE INDUSTRY CLASSIFICATION OF AN ESTABLISHMENT Hello, and welcome to the NAICS Code Tutorial Series by Class Codes. Today, we will be learning how to determine the industry classification of an establishment. An establishment is classified to an industry when its principal activity meets the definition for that industry. This is a straightforward determination for establishments engaged in a single activity, but where establishments are engaged in more than one activity, it is necessary to establish procedures for identifying its principal activity. In cases where there is more than one activity, the industry code is assigned based on the relative share of value-added. The activity with the largest value-added is identified as the establishment's principal activity, and the establishment is classified to the industry corresponding to that activity. For example, if the value added within an establishment consists of 40% from manufacturing dishwashers, 30% from manufacturing airspeed instruments and 30% from assembling clocks, it will be classified to NAICS 335223, Major kitchen appliance manufacturing. The assignment of the industry code is performed at the 6-digit level of the classification. In most cases, when an establishment is engaged in more than one activity, the activities are treated independently. However, in some cases, the activities are treated in combination. There are two types of combined activities that are given special attention in NAICS. They are vertical integration and joint production (horizontal integration). These combined activities have an economic basis and occur in both goods-producing and services-producing sectors. In some cases, there are efficiencies to be gained from combining certain activities in the same establishment. Some of these combinations occur so commonly or frequently that their combination can be treated as a third activity in its own right and explicitly classified in a specific industry. One approach to classifying these activities would be to use the primary activity rule, that is, whichever activity is the largest. However, the fundamental principle of NAICS is that establishments that employ the same production process should be classified in the same industry. If the premise that the combined activities correspond to a distinct third activity is accepted, then using the primary activity rule would place establishments performing the same combination of activities in different industries, thereby violating the production principle of NAICS. The second reason for NAICS recognizing combined activities is to improve the stability of establishment classification, both over time and among the various parties that implement the classification. An establishment should remain classified in the same industry unless its production process changes and different parties should code the same establishment or type of establishment in the same way. A consistent treatment of establishments with combined activities is more likely if they are classified to a single industry. Vertical integration involves consecutive stages of fabrication or production processes in which the output of one step is the input of the next. In general, establishments will be classified based on the final process in a vertically-integrated production environment, unless specifically identified as classified in another industry. For example, paper may be produced either by establishments that first produce pulp and then consume that pulp to produce paper or by those establishments producing paper from purchased pulp. NAICS specifies that both of these types of paper-producing processes should be classified in NAICS 32212, Paper mills, rather than in NAICS 32211, Pulp mills. In other cases, NAICS specifies that vertically-integrated establishments be classified in the industry representing the first stage of the manufacturing process.
Views: 27 Class Codes
What is NAICS Code 236118? | Class Codes
 
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https://classcodes.com/lookup/naics-code-236118/ What is NAICS Code 236118? This U.S. industry comprises establishments primarily responsible for the remodeling construction (including additions, alterations, reconstruction, maintenance, and repairs) of houses and other residential buildings, singlefamily and multifamily. Included in this industry are remodeling general contractors, for-sale remodelers, remodeling design-build firms, and remodeling project construction management firms. • Building single-family houses for others as general contractors--are classified in U.S. Industry 236115, New Single-Family Housing Construction (except For-Sale Builders); • Building multifamily buildings for others as general contractors--are classified in U.S. Industry 236116, New Multifamily Housing Construction (except For-Sale Builders); • Building houses or other residential buildings, on their own account for sale as speculative builders or merchant builders--are classified in U.S. Industry 236117, New Housing For-Sale Builders; • Remodeling nonresidential buildings--are classified in Industry Group 2362, Nonresidential Building Construction, based on the type of structure being remodeled; • Performing specialized construction work on houses or other residential buildings, generally on a subcontract basis--are classified in Subsector 238, Specialty Trade Contractors; and • Constructing and leasing residential buildings on their own account--are classified in Industry 531110, Lessors of Residential Buildings and Dwellings.
Views: 55 Class Codes
What is NAICS Code 333519? | Class Codes
 
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https://classcodes.com/lookup/naics-code-333519/ What is NAICS Code 333519? This U.S. industry comprises establishments primarily engaged in manufacturing rolling mill machinery and equipment and/or other metalworking machinery (except industrial molds; special dies and tools, die sets, jigs, and fixtures; cutting tools and machine tool accessories; and machine tools). Illustrative Examples: • Assembly machines manufacturing • Cradle assemblies machinery (i.e., wire making equipment) manufacturing • Metalworking coil winding and cutting machinery manufacturing • Rolling mill roll machines, metalworking, manufacturing • Wire drawing and fabricating machinery and equipment (except dies) manufacturing Cross-References. Establishments primarily engaged in-- • Manufacturing industrial molds--are classified in U.S. Industry 333511, Industrial Mold Manufacturing; • Manufacturing metal cutting and metal forming machine tools--are classified in U.S. Industry 333517, Machine Tool Manufacturing; • Manufacturing special dies and tools, die sets, jigs, and fixtures--are classified in U.S. Industry 333514, Special Die and Tool, Die Set, Jig, and Fixture Manufacturing; and • Manufacturing accessories and attachments for metal cutting and forming machine tools (except saw blades)--are classified in U.S. Industry 333515, Cutting Tool and Machine Tool Accessory Manufacturing.
Views: 6 Class Codes
What is NAICS Code 921110? | Class Codes
 
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https://classcodes.com/lookup/naics-code-921110/ What is NAICS Code 921110 Executive Offices This industry comprises government establishments serving as offices of chief executives and their advisory committees and commissions. This industry includes offices of the president, governors, and mayors, in addition to executive advisory commissions.
Views: 19 Class Codes
What is NAICS Code 323113? | Class Codes
 
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https://classcodes.com/lookup/naics-code-323113/ What is NAICS Code 323113? This U.S. industry comprises establishments primarily engaged in screen printing without publishing (except books, grey goods, and manifold business forms). This industry includes establishments engaged in screen printing on purchased stock materials, such as stationery, invitations, labels, and similar items, on a job-order basis. Establishments primarily engaged in printing on apparel and textile products, such as T-shirts, caps, jackets, towels, and napkins, are included in this industry. Cross-References. Establishments primarily engaged in-- • Printing on grey goods--are classified in Industry 313310, Textile and Fabric Finishing Mills; • Printing books and pamphlets--are classified in U.S. Industry 323117, Books Printing; • Printing manifold business forms including checkbooks--are classified in U.S. Industry 323111, Commercial Printing (except Screen and Books); • Manufacturing printed stationery, invitations, labels, and similar items--are classified in Subsector 322, Paper Manufacturing; • Manufacturing and printing advertising specialties--are classified in the Manufacturing sector according to the products made; and • Printing and publishing, known as publishers--are classified in Subsector 511, Publishing Industries (except Internet).
Views: 6 Class Codes
What is NAICS Code 423940? | Class Codes
 
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https://classcodes.com/lookup/naics-code-423940/ What is NAICS Code 423940 Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers This industry comprises establishments primarily engaged in the merchant wholesale distribution of jewelry, precious and semiprecious stones, precious metals and metal flatware, costume jewelry, watches, clocks, silverware, and/or jewelers' findings. Cross-References. Establishments primarily engaged in-- • Merchant wholesale distribution of precious metal ores or concentrates--are classified in Industry 423520, Coal and Other Mineral and Ore Merchant Wholesalers; and • Merchant wholesale distribution of nonprecious flatware--are classified in Industry 423220, Home Furnishing Merchant Wholesalers.
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What is NAICS Code 511210? | Class Codes
 
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https://classcodes.com/lookup/naics-code-511210/ What is NAICS Code 511210 Software Publishers This industry comprises establishments primarily engaged in computer software publishing or publishing and reproduction. Establishments in this industry carry out operations necessary for producing and distributing computer software, such as designing, providing documentation, assisting in installation, and providing support services to software purchasers. These establishments may design, develop, and publish, or publish only. These establishments may publish and distribute software remotely through subscriptions and downloads. Cross-References. Establishments primarily engaged in-- • Reselling packaged software--are classified in Sector 42, Wholesale Trade, or Sector 44-45, Retail Trade; • Providing access for clients to software published by others from a central host site--are classified in Industry 518210, Data Processing, Hosting, and Related Services; • Designing software to meet the needs of specific users--are classified in U.S. Industry 541511, Custom Computer Programming Services; and • Mass duplication of software--are classified in U.S. Industry 334614, Software and Other Prerecorded Compact Disc, Tape, and Record Reproducing.
Views: 63 Class Codes
The Conceptual Framework of NAICS | Class Codes
 
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NAICS Code Tutorial Series - The Conceptual Framework of NAICS. This is the fourth video of a seven-part series designed to help viewers better understand the NAICS classification system. USER LINKS: (1/7) The Purpose of NAICS: https://www.youtube.com/watch?v=j0c0efVVVLU (2/7) Historical Background: https://www.youtube.com/watch?v=oJlMZM3LW7s (3/7) Development of NAICS: https://www.youtube.com/watch?v=xWkix70UJsI (4/7) Conceptual Framework of NAICS: https://www.youtube.com/watch?v=VQFA8CLX2Gw (5/7) Structure of NAICS: https://www.youtube.com/watch?v=v1JuEvYm_rI (6/7) Defining the "Establishment": https://www.youtube.com/watch?v=059pQaafAQk (7/7) Determining Industry Classification of the Establishment: https://www.youtube.com/watch?v=QKA6WaKTnc0 SCRIPT FOR THE CONCEPTUAL FRAMEWORK OF NAICS Hello, and welcome to the NAICS Code Tutorial Series by Class Codes. This series is designed to help you become a NAICS code expert. Showing here is a list of all the videos in this series. We have provided links to all of these videos in the description below. Today, we’ll be going over the conceptual framework of NAICS. NAICS is based on a production-oriented, or supply-based conceptual framework in which establishments are grouped into industries according to the similarity in the production processes used to produce goods and services. The production process refers to the combination of inputs - such as capital, labor, energy, materials, and services - used in the production of outputs (I.E. Goods and services). A production-oriented industry classification system ensures that statistical agencies in the three countries can produce information on inputs and outputs, industrial performance, productivity, unit labor costs, employment, and other statistics that reflect structural changes occurring in the three economies. The boundaries that differentiate industries, in principle, will have differences in input structures and production technologies. This means that, in the language of economics, producing units within an industry have similar production functions that differ from those of producing units in other industries. I would like to quickly add that if you have any questions regarding this video, please ask in the comment section below. And of course, “like’s” are very much appreciated! Moving on, the unit of observation of the industrial classification is the producing unit or establishment. The industrial classification groups these producing units, not products. Grouping producing units in this way enable the collection of data on inputs and outputs on a comparable basis. Because establishments each produce a number of products in different combinations and using different technologies, it is hardly possible to group all the establishments producing a particular product. Therefore, it is more useful to use a production-oriented approach to group establishments into industries based on common input structures. This method permits the compilation of comprehensive data on the total output of each product by industry and across all industries. In contrast, the various versions of the SIC and of the ISIC (International Standard Industrial Classification) have used mixed criteria to create the industries of the classification. Thank you so much for watching! Now that you’ve learned about The Conceptual Framework of NAICS, you can continue your journey to become a NAICS code expert by watching the next video in this series, The Structure of NAICS.
Views: 13 Class Codes
The Development of NAICS | Class Codes
 
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NAICS Code Tutorial Series - The Development of NAICS. This is the third video of a seven-part series designed to help viewers better understand the NAICS classification system. USER LINKS: (1/7) The Purpose of NAICS: https://www.youtube.com/watch?v=j0c0efVVVLU (2/7) Historical Background: https://www.youtube.com/watch?v=oJlMZM3LW7s (3/7) Development of NAICS: https://www.youtube.com/watch?v=xWkix70UJsI (4/7) Conceptual Framework of NAICS: https://www.youtube.com/watch?v=VQFA8CLX2Gw (5/7) Structure of NAICS: https://www.youtube.com/watch?v=v1JuEvYm_rI (6/7) Defining the "Establishment": https://www.youtube.com/watch?v=059pQaafAQk (7/7) Determining Industry Classification of the Establishment: https://www.youtube.com/watch?v=QKA6WaKTnc0 SCRIPT FOR THE DEVELOPMENT OF NAICS: Hello, and welcome to the NAICS Code Tutorial by Class Codes. This series is designed to help you become a NAICS code expert. Showing here is a list of all the videos in this series. We have provided links to all of these videos in the description below. Today, we’ll be going over the development of NAICS. NAICS was developed by the ECPC (Economic Classification Policy Committee) of the United States Office of Management and Budget, along with Statistics Canada, and Mexico's INEGI (Instituto Nacional de Estadística y Geografía). The three countries agreed upon four pillars in which the conceptual framework and principles of the new system would be developed. * The first pillar of the Economic Classification Policy Committee was that NAICS would be based on a production-oriented or supply-based conceptual framework. This means that producing units using similar production processes would be grouped together in NAICS. * Second, special attention would be given to developing production-oriented classifications for * (a) new and emerging industries * (b) service industries in general and * (c) industries engaged in the production of advanced technologies. * Third, time-series continuity would be maintained to the extent possible. However, changes in the economy and proposals from data users would be considered. In addition, in order to create a common system for all three countries, adjustments would be made where the United States, Canada, and Mexico had incompatible definitions. * And fourth, in the interest of a wider range of international comparisons, the three countries would strive for greater compatibility with the International Standard Industrial Classification of All Economic Activities (ISIC Revision 3). I would like to quickly add that if you have any questions regarding this video, please ask in the comment section below. And of course, “like’s” are very much appreciated! Moving on, in effort to assist with the development of NAICS, a user committee meeting was called in November 1994. The meeting included governmental organizations, economists, and business and trade associations from each country. A coordinating committee and subcommittees, which covered agriculture, mining, manufacturing, construction, distribution networks, finance, insurance, real estate, business services, personal services, health services, social assistance, and public administration, all worked together to help develop the proposed structure of NAICS. Proposals from all three countries concerning individual industries were considered for acceptance if the proposed industry was based on the production-oriented concept of the system. The structure of NAICS was developed and accepted by Statistics Canada, INEGI and the Office of Management and Budget of the United States on December 10, 1996. Thank you so much for watching! Now that you’ve learned about The Development of NAICS, you can continue your journey to become a NAICS code expert by watching the next video in this series, The Conceptual Framework of NAICS.
Views: 9 Class Codes
Defining the Establishment | Class Codes
 
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NAICS Code Tutorial Series - Defining the Establishment in NAICS. This is the sixth video of a seven-part series designed to help viewers better understand the NAICS classification system. USER LINKS: (1/7) The Purpose of NAICS: https://www.youtube.com/watch?v=j0c0efVVVLU (2/7) Historical Background: https://www.youtube.com/watch?v=oJlMZM3LW7s (3/7) Development of NAICS: https://www.youtube.com/watch?v=xWkix70UJsI (4/7) Conceptual Framework of NAICS: https://www.youtube.com/watch?v=VQFA8CLX2Gw (5/7) Structure of NAICS: https://www.youtube.com/watch?v=v1JuEvYm_rI (6/7) Defining the "Establishment": https://www.youtube.com/watch?v=059pQaafAQk (7/7) Determining Industry Classification of the Establishment: https://www.youtube.com/watch?v=QKA6WaKTnc0 SCRIPT FOR DEFINING THE “ESTABLISHMENT” Hello, and welcome to the NAICS Code Tutorial Series by Class Codes. This series is designed to help you become a NAICS code expert. Showing here is a list of all the videos in this series. We have provided links to all of these videos in the description below. Today, we’ll be going over the definition of the “Establishment.” NAICS is a classification system for establishments. The establishment is defined as the smallest operating entity for which records provide information on the cost of inputs - capital, labor, energy, materials, and services - employed to produce the units of output. The output may be sold to other establishments and receipts or sales recorded, or the output may be provided without explicit charge, that is, the good or service may be "sold" within the company itself. The establishment is generally a single physical location, where business is conducted or where services or industrial operations are performed (for example, a factory, mill, store, hotel, movie theatre, mine, farm, airline terminal, sales office, warehouse, or central administrative office). There are cases where records identify distinct and separate economic activities performed at a single physical location (e.g., shops in a hotel). These retailing activities, operated out of the same physical location as the hotel, are identified as separate establishments and classified in retail trade while the hotel is classified in accommodation. In such cases, each activity is treated as a separate establishment provided that: no one industry description in the classification includes such combined activities; separate reports can be prepared on the number of employees, their wages and salaries, sales or receipts, and expenses; and employment and output are significant for both activities. Exceptions to the single location exist for physically dispersed operations, such as construction, transportation, and telecommunications. For these activities, the individual sites, projects, fields, networks, lines, or systems of such dispersed activities are not normally considered to be establishments. The establishment is represented by those relatively permanent main or branch offices, terminals, stations, and so forth, that are either (1) directly responsible for supervising such activities, or (2) the base from which personnel operates to carry out these activities. Although an establishment may be identical with the enterprise (company), the two terms should not be confused. An enterprise (company) may consist of more than one establishment. Such multi-unit enterprises may have establishments in more than one industry in NAICS. If such enterprises have a separate establishment primarily engaged in providing headquarters services, these establishments are classified in NAICS Sector 55, Management of companies and enterprises. Although all establishments have output, they may or may not have receipts. In large enterprises, it is not unusual for establishments to exist to solely serve other establishments of the same enterprise (auxiliary establishments). In such cases, these units often do not collect receipts from the establishments they serve. This type of support activity is found throughout the economy and involves goods-producing activities as well as services. Units that carry out support activities for the enterprise to which they belong are classified, to the extent feasible, according to the NAICS code related to their activity. This means that warehouses providing storage facilities for their own enterprise will be classified as warehouses. If you have any questions regarding this video, please ask in the comment section below. And of course, “like’s” are very much appreciated! Thank you so much for watching! Now that you’ve learned about The definition of the “Establishment,” you can continue your journey to become a NAICS code expert by watching the next video in this series, “Determining the Industry Classification of an establishment.”
Views: 25 Class Codes

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