Why Your Carpentry Class Code Matters
The difference between NCCI class codes 5403, 5645, and 5651 can mean thousands of dollars per year in workers' comp premium. All three apply to carpentry work, but they cover very different risk levels — and getting coded wrong is one of the most common (and expensive) mistakes small contractors make.
The Three Carpentry Class Codes
5403 — Carpentry (NOC — Not Otherwise Classified)
- What it covers: General carpentry that doesn't fit into a more specific category — framing, rough carpentry, structural work on new construction
- Risk level: Highest of the three
- Typical rate: $8.00–$15.00 per $100 of payroll (varies by state)
- Why it's expensive: Framing and structural work involves heights, heavy materials, and power tools — the injury frequency and severity are both high
5645 — Carpentry — Detached One or Two-Family Dwellings
- What it covers: Carpentry work exclusively on detached single-family homes or duplexes — new construction only
- Risk level: Medium
- Typical rate: $6.00–$11.00 per $100 of payroll
- Why it's cheaper than 5403: Residential framing on 1-2 story homes has lower fall heights and simpler structural work than commercial or multi-family projects
5651 — Carpentry — Finish Work Only
- What it covers: Interior finish carpentry — trim, molding, cabinet installation, door hanging, built-ins
- Risk level: Lowest of the three
- Typical rate: $3.50–$7.00 per $100 of payroll
- Why it's cheap: Finish carpenters work at ground level indoors, with lighter materials and less exposure to falls, struck-by, or structural collapse
Real Cost Comparison
For a carpentry crew with $250,000 in annual payroll in Georgia:
| Class Code | Description | Rate (per $100) | Annual Premium |
|---|---|---|---|
| 5403 | General carpentry | ~$10.50 | ~$26,250 |
| 5645 | Residential detached | ~$8.00 | ~$20,000 |
| 5651 | Finish work only | ~$5.00 | ~$12,500 |
The spread: $13,750/year between the cheapest and most expensive code for the same payroll.
Common Mistakes
- All employees coded to 5403 by default. If you have a finish crew and a framing crew, they should be split into separate codes. Most carriers allow code-splitting on the same policy.
- Using 5645 when you do commercial work. This code is strictly for detached 1-2 family homes. One commercial job on your books and the auditor reclassifies your entire payroll to 5403.
- Not splitting payroll between codes. If an employee does both framing and finish work, their time should be allocated proportionally. Keep time records to support the split at audit.
- Ignoring state variations. NCCI codes are standard across most states, but rates vary dramatically. Georgia, Florida, South Carolina, North Carolina, and Tennessee all use NCCI but set their own rate multipliers.
How to Get the Right Code
- Describe your actual work — not just "carpentry." Tell your agent exactly what your crews do, on what type of structures, and at what heights.
- Split payroll by task when employees do multiple types of work. Keep daily logs.
- Review your policy annually — if your business shifts from new construction to remodels/finish work, your codes should shift too.
- Work with an independent agent who understands class codes across multiple carriers. A captive agent locked to one carrier can't reclassify you even if a competitor would.
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Sources: NCCI Scopes Manual — Class Codes 5403, 5645, 5651; Georgia State Board of Workers' Compensation Rate Tables 2025–2026; NCCI Experience Rating Plan Manual