First, understand the significance of your payroll classifications: the governing classification and the standard exceptions (clerical, outside sales and, usually, drivers).

The governing classification is the one which best describes the exposure of workers usual to your type of business. This determination of governing classification is where mistakes often occur. There are over 600 such classifications which attempt to keep pace with changes in businesses, but do not always do so. A misclassification can result in one that is more expensive.

Remember, when reviewing your governing classification, it may be wrong for any of several reasons. The definition of your classification may have changed recently, there may be an unusual exception that has been overlooked, there may be a separate and distinct part of your operations which is eligible for a different classification, or the description of your operations used by your insurance carrier to determine your clasification may have been incorrect or confusing.