By: Saundra Uy, CPA, CVA, CGMA
Did you know that employers must report Standard Occupation Classification (SOC) codes, job titles and county worked to WorkForce West Virginia beginning in the first quarter of 2024?
In June of 2022, West Virginia State passed SB 548 requiring employers to report this new information in their quarterly reports for unemployment insurance. Implementation is required starting in 2024.
What is a SOC Code?
Standard Occupation Classification, or SOC, is a system used by federal agencies to classify workers into occupational categories for the purpose of collecting, calculating, and disseminating data. Although West Virginia maintains a list of SOC codes, representatives of WorkForce West Virginia have indicated they will accept the Federal Standard codes.
Helpful Resources
Find a list of SOC occupations using this link https://www.bls.gov/oes/current/oes_stru.htm
If an employee works more than one job, do not assign multiple SOC codes. Choose the code that fits the majority of their work.
Recommendation
Employers should be proactive and determine job titles, which SOC code applies to each employee and which WV county they work in as soon as possible. On or before March 31, 2024, employers should add this information to their payroll system, or provide it to their payroll service provider. Your payroll software provider should publish instructions online or within the software to explain how you update the employee records with this new information.
In the future, gather this information for each newly hired employee and promptly record it in the payroll system as you go.
Good To Know
There are 867 SOC codes organized in 23 major groups. Codes are provided for broad occupations as well as detailed occupations. The codes are 6 digits (may or may not require a dash depending on your payroll system). For example, the code for Lawyers is 23-1011, Waitress is 35-3031, Bookkeeper is 43-3031, and Electrician is 47-2111. Employers familiar with the employee’s job title and job duties should determine which SOC code best applies. If the employer delegates this responsibility, it is important that the person making the SOC code selection is given sufficient information by the employer.
The following states require all employers to report SOC codes for employees with earnings subject to State Unemployment Tax during the quarter:
- Alaska
- Louisiana
- Washington
- West Virginia (beginning in 2024)
Don’t confuse SOC codes with NAICS codes or workers’ compensation codes:
- NAICS (North American Industry Classification System): Identify business industries using a standard federal classification system
- Workers’ comp codes: Identify types of work so insurance companies can estimate job risk and workers’ comp insurance costs
Quarterly Reporting Due Dates:
- January 31
- April 30
- July 31
- October 31
WorkForce WV Wage Reports (including the newly required SOC codes and work locations), Contribution Reports, and contributions due are required to be submitted quarterly and are due within one month after the end of each calendar quarter. Timely wage reporting and contribution payments will prevent costly interest, penalty charges, assessments, and legal action.
Suttle & Stalnaker, PLLC is ready to help you. If you would like more information on how this applies to you, contact Saundra Uy, CPA, CVA, CGMA at suy@suttlecpas.com or at 304.343.4126.