What Are NAICS Codes?
NAICS (North American Industry Classification System) codes are six-digit numbers that classify businesses into specific industries. These codes were introduced in 1997 and are used by federal agencies to categorize businesses. However, it’s not just the federal government that uses them—states and other entities also rely on these codes to standardize data.
- State reporting
Recently, Maryland has required NAICS codes to be reported on end-of-the-year payroll tax filings if you have at least one employee who works or resides in Maryland.
Other states may follow suit as reporting enhancements become more standardized across industries. These efforts are often linked to broader initiatives that seek to provide more granular economic data, assisting in policy-making and resource allocation. - Compliance
Payroll companies may require industry information such as NAICS codes as part of their due diligence to comply with Know Your Customer (KYC) regulations. These codes help verify the industry of your business, ensuring accurate information for compliance and risk management.
How do I find my NAICS code?
NAICS is a self-assigned system, so you choose the code that best represents your primary business activity.
In Patriot Software, we have a native NAICS lookup tool for your convenience.
- Identify the main product or service your business offers.
- Begin by typing a keyword that best describes your business, or your NAICS code, if you know it, in the NAICS search field in the software.
- Keep refining your business activities until you find a 6-digit code that closely aligns with your primary business activity.
You can also visit the official government census website and use their search tool.
Where do I enter my NAICS code?
Go to Settings > Company Settings > Company Info to add your six-digit code to the software.
Some states may require SOC codes for industry reporting on tax filings, also. The software will prompt you with a search lookup if it applies to your company. Read, “Adding Employee Standard Occupational Classification (SOC) Codes,” and “SOC Codes and Mandatory Reporting: Does Your State Want Worker Classification Data?” for more info.
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