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Workers' comp class codes, audits and seasonal crews
A workers' comp audit checks the payroll you estimated at the start of the policy year against what you really paid, class code by class code, and bills or refunds the gap. Landscapers get surprise bills when spring hiring and H-2B crews outgrow the estimate, when 1099 helpers have no comp certificate, and when install, hardscape or tree hours sit in the same payroll bucket as mowing. Clean time records and certificates on file head off most of it.
Key takeaways
- Your comp premium is a deposit. After the policy year ends, a workers comp audit counts your real payroll by class code and bills or refunds the difference.
- Class codes set the rate. Mowing and upkeep, new installs, tree work off the ground, masonry and irrigation can each carry a different rate per $100 of payroll.
- Most surprise bills come from five places: a payroll estimate set before the spring rush, H-2B crews, 1099 helpers without their own comp, mixed hardscape or tree hours, and overtime that isn't split out.
- Time records by job type and a certificate from every sub, collected before they start, prevent most of those bills.
How a workers comp audit works for a landscaping company
A workers comp audit is the carrier's year-end count of what you actually paid your people. When the policy starts, your premium is built on an estimate of payroll for each class code. After the policy year ends, an auditor checks the real numbers, then you get a bill for more premium or a refund.
The math is simple. Your carrier takes payroll in each class, divides it by 100 and multiplies by that class's rate. Your experience mod then moves the total up or down based on your past claims compared with similar employers.
Most businesses get an audit every year, whether or not anyone got hurt. It may be a form you fill out, a phone or online review where you upload records, or an auditor at your office going through payroll reports, tax forms and sub certificates.
For a landscaping company, timing is the trap. Many policies renew in winter, when the yard is quiet and payroll looks small. The audit then lands after a full season of spring cleanups, summer install crews and fall leaf work.
Landscaping workers comp class codes and what they cost
In most states that use NCCI's class system, a landscaping company's payroll falls into a small family of codes. The table uses Indiana's filed rates effective January 1, 2026, as one real example of how far apart they sit. Rates in your state will differ, and carriers can file their own changes to bureau rates.
| Class code | What the work usually looks like | Indiana rate per $100 of payroll (1/1/2026) |
|---|---|---|
| 9102 Lawn maintenance, commercial or domestic | Mowing, edging, trimming and upkeep of existing lawns and beds | $1.377 |
| 0042 Landscape gardening | New installs: grading, planting, sod, new beds | $2.097 |
| 0106 Tree pruning, spraying, repairing | Tree work off the ground: ladders, lifts, climbing | $3.264 |
| 5022 Masonry | Mortared walls and other masonry | $2.241 |
| 5221 Concrete or cement work | Poured patios, driveways and sidewalks | $1.399 |
| 6229 Irrigation or drainage system construction | Building irrigation or drainage systems | $1.458 |
| 8810 Clerical office employees | Office staff who don't go to job sites | $0.073 |
Your price depends on your payroll and class codes, your revenue, the services you offer (especially chemical work), your trucks and trailers, your claims history and the limits you choose.
0042 vs 9102: install work or upkeep
The split between 0042 and 9102 is where a lot of landscaping premium goes wrong. NCCI says 0042 fits new landscaping installs and 9102 fits upkeep of existing lawns. When NCCI inspected 0042 policies in 2023, it moved 69% of them to 9102.
In Indiana's numbers, that gap is real money. One hundred thousand dollars of mowing payroll costs about $2,097 in 0042 and about $1,377 in 9102, before any mod. Many companies do both kinds of work and can carry both codes, if the payroll records show who did what.
California is different. Its bureau's 0042 already includes garden upkeep, so the install-versus-mowing split doesn't apply there the same way. Our California landscaping insurance page covers the state's own rules.
Tree work, hardscape and irrigation
Ground-level pruning of shrubs and small trees often stays in a landscaping code. Once the work leaves the ground on ladders, lifts or ropes, it usually moves to 0106, and in some states that pulls in the whole crew on that job. Ask us before you take that job.
Hardscape is the other gray zone. Pavers and segmental block set dry as part of a planting job may stay in 0042 in some states. Mortared walls and poured concrete usually get rated as masonry or concrete work. Building an irrigation system has its own code too, so an auditor may move sprinkler-install payroll out of 0042 depending on the job and your state. If you sell design-build and hardscape installs, tell your agent so the policy lists the codes your crews really work in.
Five reasons landscapers get a surprise workers comp audit bill
A big audit bill rarely means someone cheated. It usually means the estimate and the records didn't match the season you actually had.
1. The estimate was set before the spring rush
If you told the carrier $150,000 in February and paid $240,000 by November, the audit charges premium on the extra $90,000. Growth is good news, but it should show up on the policy before the audit does. Most carriers will update your estimate mid-term if you call when you add a crew.
2. H-2B crews arrived after the policy was written
Landscaping and groundskeeping is the largest job group in the H-2B program. In fiscal year 2025, the Department of Labor certified 89,013 of those positions, 38.3% of all H-2B positions.
H-2B workers are your employees, and states such as New York tell H-2B employers plainly that they must carry comp for them. Their wages count as payroll. Under NCCI-style rules, the value of lodging or meals you give workers as part of their pay is counted too, though reimbursed business expenses with clean records usually aren't.
3. 1099 helpers had no comp of their own
A 1099 is a tax form. It doesn't decide whether a helper is your employee for workers' comp, and the auditor won't treat it as proof. Hand an auditor a sub's invoice with no comp certificate attached, and that sub's pay may get added to your own payroll. Under rules like North Carolina's Rule 2-H, if you can't hand over the sub's payroll records and the price doesn't show a definite payroll amount, the full subcontract price can count as payroll, rated in the class of the sub's work. The familiar 90% (labor only) and 50% (labor and materials) figures are only minimums, used when job paperwork shows how much of the price was wages.
Whether a solo helper is truly independent is a state-law question. Before anyone goes on a 1099, run it past your CPA or an employment lawyer.
4. Hardscape and tree hours weren't tracked apart
You can split one worker's pay between two codes, but only with real time records that show the dollars earned in each kind of work. Without them, the rule in most NCCI states puts that person's whole pay in the highest-rated code they touched. One afternoon on a ladder can drag a full season of mowing pay into 0106.
5. Overtime wasn't split out
In most NCCI states, the extra half of time-and-a-half pay is left out of comp payroll. That only works if your books show overtime pay apart from regular pay, by worker and by class. Long June weeks add up, so make sure your payroll system can report it.
Payroll records and certificates that prevent a workers comp audit bill
You don't need an accountant on staff to pass an audit. You need a few habits that start in March, not in the week the auditor emails.
- Code every timesheet by job type. Have crew leads mark hours as mowing and upkeep, install, hardscape, irrigation or tree work. A simple app or paper sheet works, as long as it ties to payroll in dollars.
- Collect a comp certificate before a sub starts. Get it in your hands before the first day, check the dates, and save it with the sub's contract. A helper with no certificate should be set up as an employee or not used. Our certificate of insurance guide explains what to look for.
- Call your agent when the crew grows. A new install crew, an H-2B arrival date or a second yard all change payroll. A mid-term update lowers the gap the audit has to close.
- Keep overtime on its own line. Your payroll report should show overtime pay apart from regular pay for each worker.
- Keep office and sales staff off the field. An office manager who never goes to job sites may qualify for 8810. Once they run a mower on busy Saturdays, that pay may be rated as field work.
- Build an audit folder. Keep quarterly 941s, state unemployment reports, the payroll register, 1099s and sub certificates in one place for the whole policy year.
- Read the audit worksheet before you pay. Check the class codes, the payroll totals and any subs counted as yours. Errors are easier to fix in the first few weeks.
Ohio: state fund only, with a yearly true-up
Texas: comp is a choice for most private employers
What to do if the workers comp audit bill looks wrong
Start with the worksheet, not the invoice. Most bad bills trace back to a wrong class code, a sub counted as payroll even though a certificate exists, or overtime left in at full value. Send the auditor the missing records and ask in writing for a revised audit.
If the carrier won't budge on a class or payroll question, most NCCI states have a filed dispute process. You first try to settle it with the carrier, pay the premium you don't dispute, and explain the part you do in writing. A state appeals board can then hear it, and NCCI may inspect your operation to settle a class question. Read more on NCCI's dispute resolution page.
A big bill can also be a sign the policy was written wrong from the start. If your company mostly mows, carries a 0042-only policy and keeps getting reclassified, it's worth a fresh look at the codes and the carrier. Our workers' comp for landscapers page covers what a well-built policy includes, and the landscaping insurance cost guide shows how comp fits your total spend. Grounds companies with HOA and property-manager work can also see our commercial maintenance page. When you're ready, start your quote and a licensed agent will review your payroll by class with you.
Frequently asked questions
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