Employers must advise the Commission of changes to any aspect of their business operations.
The Commission’s classification system is based on Statistics Canada’s Standard Industrial Classification (SIC), which we’ve modified to better reflect the business environment in Newfoundland and Labrador. All registered employers are assigned to a Newfoundland Industrial Classification (NIC) code based on the description of industry they provide on their registration form.
For assessment purposes, employers are classified by the industry in which they are operating represented by Newfoundland Industrial Classification (NIC) codes. This classification encompasses all work incidental to the production of goods and services provided. Incidental is where an operation, regardless of whether separated by location or payroll, exists to serve the main industry of the firm.
The Commission organizes the NIC codes into industry groups and currently has 80 industry groups.
In creating industry groups, we consider two main factors:
The claims cost experience for each NIC code is examined every year to ensure that the NIC code is still in the appropriate industry group. If the cost experience changes significantly, the NIC code may be moved to a more appropriate industry group.
- Similarity of business activity; and
- Cost experience.
If an employer is operating in two or more distinct industries, the Commission may consider classifying the employer in multiple NIC codes. Employers who qualify for multiple classification will therefore have multiple employer accounts.
We permit separate NIC code classifications only on the basis of industrial undertaking, not on the basis of the workers’ occupations. Separate NIC codes are not permitted if the operation or activity is a supportive, inescapable or an ancillary part of the firm’s main industry. For example, a manufacturing firm which maintains a sales division or sales outlet to sell its products is not assigned a separate sales category rather the sales division is considered an inescapable part of the firm’s manufacturing operation.
To qualify for multiple classification, your firm must meet the following criteria.
- The operation must be one that is performed by specific personnel as their sole function;
- Each operation must keep separate payroll records;
- The operations must generate revenue independently of each other;
- The services of each operation must be offered to the general public or to non-affiliated companies; and
- The operation must not be an incidental or a supportive part of the firm’s main industry.
If you need further assistance, contact our Financial Analyst at (709) 778-1189, 1-800-563-9000 ext. 1189.