SIC/NAICS codes

clarkbar

Does anyone know how a SIC/NAICS code is assigned to a business? Who assigns it? Thanks.

Don D

An SIC code, standard industrial classification, is typically assigned by the government, usually the department of labor. The code designates the type of industry you are. They use a classification book, of which I have a stolen copy. It's based, as the name implies, on the industry your company fits into and the type of work activity at your company. I don't see my book at the moment, but there are a scattering of industries such as mining, metal machining, retail sales, service, food establishments, warehousing, education (by type), entertainment (gentleman's clubs), on and on and on and the first two digits relates to that. Is this close enough?

It's sort of like your IRS ID number, relatively meaningless until an agency decides to pigeonhole you and classify you by establishment.

mushroomHR

Thanks Don. The OSHA website has a nice link to the cross-reference of the SIC/NAICS codes and I am quite familiar with what they are and their purpose. I was only curious as to who assigns these number to a business. No one here at my company seemed to know how we got our number. Your explanation helped. Our numbers are published on our EEO-1 report from the EEOC. That's the only place I ever see them.

Don D

My recollection is that probably the very first time a number was assigned to the company was the point at which the Unemployment Insurance people registered your business in your state. They have to assign a code at that point. Spinoff uses vary and multiply and you'll even see non-governmental industrial recruitment groups in the state classifying you using the same number and a variety of government survey forms will come to you with the number already filled in. I wouldn't be surprised to find out M. Lee Smith has us classified the same way, but it all originates the way I described as far as I recall.