iSolved and WC Officer Exemptions

iSolved and WC Officer Exemptions

iSolved and WC Officer Exemptions

Sure, I can help with that! Here is how officer exemptions work with iSolved.

This article explains how the Workers' Comp Exempt setting works in iSolved and how to use it.

What the setting is

Each employee's profile in iSolved has a Workers' Compensation section with two key items: the employee's workers' comp class code (for example, 8810 Clerical Office Employees) and a checkbox labeled Workers' Comp Exempt. The checkbox is for business owners and corporate officers who have legally chosen to be exempt from workers' comp coverage.

What happens when the box is checked

  • Wages are left out of workers' comp reporting. The employee's pay is excluded from the payroll iSolved reports for workers' comp.
  • No premium is figured on those wages. If your policy is pay-as-you-go and billed from iSolved payroll data, the exempt employee's wages aren't sent to the carrier, so no premium is charged on them each pay period.
  • The class code stays on file. The employee still shows a class code, such as 8810. This keeps the record complete and makes sure wages report under the right code right away if the exemption ends and the box is unchecked.
  • Payroll itself doesn't change. The employee is still paid normally, and taxes, deductions, and other payroll reporting aren't affected.

What the setting does not do

Checking the box does not make someone exempt. It only tells the payroll system how to report that person's wages. The legal exemption has to be filed with and approved by your state.

An exempt person also has no workers' comp coverage. If they are hurt on the job, the policy won't pay their medical bills or lost wages. Most health plans also exclude injuries that happen at work, so they may have to pay out of pocket. See "Exempt Officers and WC Claims."

Why accuracy matters

  • Exemption on file, box checked: wages are correctly left out and no premium is owed on them.
  • Exemption expired or never filed, box checked: wages are left out during the year, but the audit adds them back. That can mean an unexpected premium bill.
  • Exemption on file, box not checked: you are charged premium on wages that should not be included, so you overpay. You may not get that back until the audit.

Other fields in this section

  • Classification: an optional field some policies use to group employees further for reporting. You can usually leave it blank unless your carrier or agent asks for it.
  • Wage Limit Maximum and Wage Limit Frequency: these show any cap on the wages counted for workers' comp. N/A means no cap is set for that employee. NCCI sets the Wage Limit Maximum each year, and our team updates it in iSolved. You can't change it in iSolved.

Recommended steps

  • Confirm the officer or owner has a current, approved state exemption before you check the box.
  • Keep a copy of the exemption certificate and send a copy to our Work Comp team at workcomp@ibusinesssolutions.com.
  • Track the expiration date and renew before it lapses.
  • If the exemption ends or the person no longer qualifies, uncheck the box right away so wages are reported going forward.
  • Contact us before making changes if you aren't sure whether someone qualifies.
  • If you aren't on PAYO, still check the box so your payroll records match your exemption.

How to set it in iSolved

  1. Go to Employee Summary and find the employee.
  2. Select the person by clicking their name.
  3. On the right side, find their Workers' Comp section.


  1. Select Workers' Comp. It doesn't look like a link, but it is.
  2. Select the pencil to edit the classification.


  1. Check the Workers' Comp Exempt box only if the person has a valid Officer Exemption filed through the state of Florida.


  1. Select Save.

If the box is not checked for an exempt officer, the officer's wages stay in your premium, which can lead to a surprise at audit.


For the full exemption rules, see "Work Comp: What is an Officer Exemption?"

If you have any questions, please feel free to contact us at workcomp@ibusinesssolutions.com or call (941) 487-7275, ext. 3. Our business hours are 9:00am-5:00pm EST.