To stay compliant with state-level payroll and workers' compensation requirements, certain states require specific codes to be assigned to employees during onboarding. This guide explains how to manage SOC and Class Codes within Deel to avoid registration delays or reporting errors.
In this Article
Class Codes (Risk Classification)
How to add a missing Class Code
SOC Codes (Standard Occupational Classification)
Class Codes (Risk Classification)
What they are: Class codes are used to classify employees for workers' compensation purposes. They represent the level of risk associated with a job role and are required by the state at the time of registration to determine your insurance premiums.
States affected: Wyoming, Washington.
How to add a missing Class Code:
Log in to Deel as an Admin.
Go to Organization Settings > Entities > US Entity.
Select the Payroll tab and scroll down to Registrations.
-
Locate the relevant state registration and enter the missing information:
Class code
Risk class base rate
Employee withholding rate
Note: If you are unsure of the correct code, log in to your state’s workforce or insurance platform to confirm the rates assigned to your business.
SOC Codes (Standard Occupational Classification)
What they are: SOC codes identify the specific type of work an employee performs. These codes are used by state agencies for labor statistics and quarterly wage reporting.
States affected: Indiana, Louisiana, South Carolina, Washington, West Virginia.
How to add a missing SOC code:
Log in to Deel as an Admin.
Go to the People tab and search for the employee’s profile.
Click View Agreement, then select Edit Job Information.
Enter the applicable SOC code and click Save.
Need help identifying a code? You can browse the U.S. Bureau of Labor Statistics (BLS) website or the specific state agency's website for occupational definitions.
Frequently Asked Questions
[ACCORDION] Why am I seeing a "missing code" error during onboarding?
Some states require these codes as a mandatory field for payroll tax or insurance setup. Deel prompts for this information to ensure your company remains compliant with local labor laws from day one.
[ACCORDION] Can I use the same SOC code for all my employees?
No. SOC codes are based on the specific job duties of each individual. For example, a Software Engineer and an Accountant will have different SOC codes.
[ACCORDION] What happens if I enter the wrong Class Code?
Entering an incorrect Class Code can result in overpaying or underpaying your workers' compensation premiums, which may lead to audits or penalties from the state. Always verify codes via your state portal if you are uncertain.
[ACCORDION] Are these codes required for international employees?
No, SOC and Class Codes as described here are specific to US-based employees and state-level compliance requirements.
[ACCORDION] How often do I need to update these codes?
You typically only need to set these during onboarding or if an employee changes job roles. However, you should review your Class Codes annually if your state adjusts its risk classifications or rates.