What is Standard Occupational Classification (SOC)?
The Standard Occupational Classification (SOC) system is a federally developed framework used to classify workers into occupational categories. It was created by the U.S. Office of Management and Budget (OMB) and is maintained in collaboration with several federal agencies, including the Bureau of Labor Statistics (BLS).
While the SOC system is a federal standard, not a federal mandate, some states have adopted requirements that mandate employers to include valid SOC codes in quarterly wage reports. In these states, employers must assign the appropriate SOC code to each employee to comply with state-level reporting regulations, typically related to unemployment insurance filings or workforce development programs.
The BLS relies on SOC codes to collect and analyze labor market data, such as employment trends, wages, and job growth across various industries. This standardized system ensures consistency in how occupations are reported and tracked nationwide.
Which states require SOC Codes?
As of 2025, the following states require employers to report SOC codes for employees as part of their quarterly unemployment insurance (SUI) wage reporting:
- Alaska
- Indiana
- Louisiana
- South Carolina
- Washington
- West Virginia
In these states, employers are required to assign the appropriate SOC code to each employee to comply with state-level reporting regulations. Failure to include accurate SOC codes in these filings can result in rejected submissions, reporting delays, or penalties, depending on the state's enforcement protocols.
SOC Code Reporting in Empeon
Unlike many other areas of Empeon Workforce where codes must first be configured at the company level, SOC codes are pre-configured in the system and immediately available for assignment. There are essentially two ways in which SOC codes can be assigned to employees:
- Manual Assignment - For employees working in states where SOC code reporting is required, the appropriate SOC code can be manually assigned on the Employee Profile.
- Linked to Positions - Positions set up in Job Info can be linked to individual SOC codes so that any time the position is assigned, the SOC code is automatically assigned as well.
Manually Assigning SOC Codes
A "SOC Code" field on the Employee Profile is only available if the employee's "Work State" is listed as one of the six states in which SOC reporting is required.
For existing employees, the Work State field can be found in the Taxes card located within the Payroll section of the Employee Profile. To maintain this field, simply click the Edit button.
When this field is set to one of the six states in which SOC Reporting is required, there will be a SOC Code field listed within the Employment Status card, located in the HR section of the Employee Profile. To maintain this field, simply click the Edit button.
For new employees, whether it is manually adding them or through an Onboarding Template, a SOC Code field is available for entry. However, once the Work State field is established as one of the six states where SOC code reporting is required, this field becomes required.
Linking SOC Codes to Positions
Linking SOC codes to positions in Empeon provides a more streamlined and scalable way to manage SOC code assignments within Empeon Workforce. Within the Positions category under Job Info, each registered position can be tied to a specific SOC code.
When this setup is in place, assigning a position to an employee automatically assigns the corresponding SOC code as well.
This method simplifies ongoing maintenance of SOC codes because as long as positions are properly linked to the correct SOC codes, clients only need to ensure that employees are assigned to the appropriate position.
Although SOC code reporting is only required for employees in select states, assigning SOC codes to all employees poses no issues. This proactive approach can also help prepare for potential future changes, should additional states adopt SOC code reporting requirements.