Workers' comp
Workers' Comp Class Codes for Healthcare Employers
The class codes that apply to home care, senior living, hospitals, and practices, how premium is figured, and what the audit looks at.
General information, not legal or tax advice. Checked October 2026. Sources are listed at the end.
Workers' comp premium in healthcare is driven by a handful of class codes, and the right code can change your cost a lot. Home care, nursing homes, and hospitals each have their own codes, and senior living communities often split employees among several. Arizona uses the National Council on Compensation Insurance (NCCI) classification system.
How the premium is figured
The basic formula is the same for every code:
Premium = (payroll ÷ 100) × class rate × experience mod, plus or minus discounts, schedule credits, and fees.
- Payroll is generally gross wages for employees in that code, with the overtime premium left out if your records show it separately.
- The class rate is set by the insurer for each code, based on the expected cost of injuries in that kind of work.
- The experience mod compares your past claims with the average for employers your size. Below 1.00 lowers your premium; above 1.00 raises it.
Example
A home care agency has $1,200,000 in caregiver payroll in code 8835. At a hypothetical rate of $2.50 per $100 and a 0.95 mod, the premium is 12,000 × $2.50 × 0.95 = $28,500 before discounts and fees. Actual rates vary by insurer and year.
Common healthcare class codes
Descriptions are paraphrased from NCCI codes as used in Arizona and other NCCI states. Your insurer or PEO assigns the final classification.
| Code | Description | Typical employers |
|---|---|---|
| 8835 | Home, public, and traveling healthcare, all employees | Home health and home care agencies, visiting nurses, hospice care in the home |
| 8829 | Nursing or convalescent home, all employees | Skilled nursing and rehabilitation facilities |
| 8824 | Retirement living centers, health care employees | Assisted living and memory care: nurses, aides, med techs |
| 8825 | Retirement living centers, food service employees | Kitchen and dining staff in senior living |
| 8826 | Retirement living centers, all other employees, salespersons, drivers | Housekeeping, maintenance, activities, and drivers in senior living |
| 8833 | Hospital, professional employees | Hospital nurses, therapists, and other professional staff |
| 9040 | Hospital, all other employees | Hospital housekeeping, food service, and maintenance |
| 8832 | Physician and clerical | Medical and dental practices, outpatient clinics |
| 8810 | Clerical office employees | Office-only staff, where a separate clerical code applies |
Codes described as covering "all employees" generally include office staff, so an agency's schedulers and billers don't get a separate clerical code.
Getting the classification right
- Classify by the business, then the role. Most healthcare employers have one main code that fits the organization. Senior living and hospitals are the main exceptions, where employees are split by what they do.
- Separate operations, separate codes. An organization that runs both a home care agency and an assisted living community may carry codes for each, if the operations and payroll are kept separate.
- Check after a change. Adding skilled services to a nonmedical agency, or opening a residential facility, can change your codes.
Overtime premium and the audit
The extra half-time paid for overtime is usually left out of the payroll used for comp premium, but only if your payroll records show it separately. In healthcare, with differentials and 12-hour shifts, that can be a meaningful amount, so make sure your payroll reports break it out.
After the policy year, the carrier audits your actual payroll by code and adjusts the premium. Clean reports by classification, with overtime premium separated, make the audit faster and fairer. If you've paid 1099 contractors to do the same work as employees, the auditor may add their pay to your payroll. 1099 vs. W-2 for healthcare workers.
Workers' comp through a PEO
In Arizona, employers with workers regularly employed in their business generally must carry workers' comp (A.R.S. § 23-902). A PEO arrangement typically includes coverage under the PEO's policy, with the premium billed separately from the $75 administrative fee. Your employees are still classified by the work they do, and the PEO handles certificates, payroll reporting, and the audit. How PEO pricing works.
Class code questions
What workers' comp class code is home health care?
Home health and many home care agencies are classified under code 8835, which covers healthcare employees who work in clients' homes or travel to provide care. Your carrier or PEO confirms the code for your agency.
What class code is a medical or dental office?
Physician and dental practices are generally classified under code 8832, physician and clerical. Office-only employees in other businesses use 8810, clerical office employees.
What class code is assisted living?
Retirement living centers typically split employees into three codes: 8824 for health care employees, 8825 for food service employees, and 8826 for all other employees. Nursing and convalescent homes generally use 8829 for all employees.
Is overtime included in workers' comp payroll?
Usually not the premium part. The extra half-time paid for overtime is generally left out of the payroll used for workers' comp premium, if your records show it separately. The straight-time pay for those hours is included.
Does a PEO include workers' comp?
A PEO arrangement typically includes workers' compensation coverage under the PEO's policy, with the premium billed separately from the administrative fee. Your employees are still classified by the work they do.
Get workers' comp handled
A PEO can cover your team under its workers' comp policy and handle the reporting, for a flat $75 per employee per month administrative fee (subject to provider approval). Free quote, no obligation. Use the quote form