Payroll administrators use SOC codes in R365 to classify employees by occupation type for state wage reporting and federal W-2 compliance. Several states now require Standard Occupational Classification (SOC) codes on unemployment and wage filings. R365 stores SOC codes at the job level, so employees automatically inherit the correct code when assigned a job. This reduces manual work and helps ensure compliance with state reporting requirements.
In addition to SOC codes, R365 supports Treasury Tipped Occupation Codes (TTOC) — a separate federal classification used in W-2 reporting for tipped occupations. Both SOC and TTOC codes are managed on Job Records, not on individual employee records. For details on how these codes interact, see The Tipped Job Checkbox.
Prerequisites
Before setting up SOC codes, confirm the following:
The updated Job Form must be enabled for the organization. This setting is managed by R365 and cannot be self-enabled. To request activation, contact R365 Support or a CSM.
Payroll admin permissions are required to create and edit Job Records.
If assigning TTOC codes to tipped jobs, the Tipped job checkbox must be checked on the Job Record. This is a separate field from the Tip Designation dropdown.
What Are SOC Codes?
Standard Occupational Classification (SOC) codes are part of a federal system maintained by the Bureau of Labor Statistics (BLS). Each code identifies a specific occupation type, such as "First-Line Supervisors of Food Preparation and Serving Workers" (35-1012).
Some states require SOC codes for unemployment insurance (SUI) and wage reporting. If your state requires SOC codes, you can assign them to employee records in R365. Check with your state's labor department or your accountant to confirm whether SOC codes apply to you.
What Are TTOC Codes?
Treasury Tipped Occupation Codes (TTOC) are a federal classification tied to specific SOC codes. TTOC codes identify occupations that are customarily tipped under the One Big Beautiful Bill Act (OBBBA) for the current tax year. These codes appear on W-2 forms (Box 14b) and support IRS reporting requirements.
About OBBBA
The One Big Beautiful Bill Act (OBBBA) established new federal reporting requirements for tipped occupations. TTOC codes were introduced as part of this legislation to identify customarily tipped occupations on W-2 forms.
Some states require SOC codes for unemployment insurance (SUI) and wage reporting. If required by the state, SOC codes can be assigned to employee records in R365. The table below lists states that currently require SOC codes.
Which Customers Need SOC Codes?
SOC codes are especially important for customers with employees in states that mandate SOC on wage and SUI filings. The following states currently require SOC codes:
State | Notes |
|---|---|
Alaska | Required in SUI wage reporting |
Indiana | Field included in reporting format |
Louisiana | State-level unemployment reporting |
South Carolina | Required via SUITS quarterly reporting |
Washington | SOC or job title required |
West Virginia | Required in wage reports |
Note
This list is subject to change. More states are expected to adopt SOC requirements. R365 will continue to add support as new mandates take effect.
Even for customers in states that do not yet require SOC codes, setting up SOC codes is a best practice. Configuring SOC codes now prepares the organization for future mandates and supports accurate federal TTOC reporting on W-2 forms.
How R365 Stores and Uses SOC Codes
Job-Level Storage
SOC and TTOC codes are configured on Job Records, not on individual employee records. When creating or editing a Job Record, payroll admins assign occupation codes on the Job Form. The entry point depends on whether the job is tipped — see The Tipped Job Checkbox below for details.
Two types of occupation codes can be stored at the job level:
Federal SOC code — The standard BLS classification code. This is the primary code used for most reporting.
State-specific occupation code — Some states may require their own occupation code format. R365 currently supports federal SOC codes only. State-specific occupation codes are planned for a future release.
The Tipped Job Checkbox
The Tipped job checkbox on the Job Form controls which occupation code fields are visible and how they interact. This checkbox determines whether R365 treats the job as a tipped occupation for Treasury reporting purposes. The Tipped job checkbox is separate from the Tip Designation field — Tip Designation controls how tips are handled operationally (Directly Tipped, Indirectly Tipped, etc.), while the Tipped job checkbox controls TTOC eligibility for W-2 reporting.
When Tipped job is unchecked (non-tipped jobs):
The Standard Occupational Classification (SOC) code field is visible and editable. Select the appropriate SOC code directly from the dropdown.
The Treasury Tipped Occupation Code (TTOC) field is hidden. Non-tipped jobs do not require a TTOC code.
When Tipped job is checked (tipped jobs):
The Treasury Tipped Occupation Code (TTOC) field appears and becomes the primary entry point. Select the TTOC code that matches the tipped occupation.
The Standard Occupational Classification (SOC) code field auto-fills based on the selected TTOC. If the TTOC maps to only one SOC code, the SOC field is read-only. If the TTOC maps to multiple SOC codes, the SOC field remains editable so the correct SOC code can be selected from the available options.
The TTOC-to-SOC mapping is maintained through a centralized service. Payroll admins do not need to manually look up SOC codes for tipped jobs — selecting the TTOC handles it automatically.
Employee Inheritance
Employees do not have a separate SOC or TTOC setting. When a job is assigned to an employee, the employee automatically inherits that job's SOC and TTOC codes. If the employee's job assignment changes, the codes update automatically.
SOC codes cannot be edited directly on the employee record. To change an employee's SOC code, update the SOC code on the Job Record — all employees assigned to that job will receive the updated code.
SOC code timing for filings
For state wage and SUI filings, R365 uses the SOC code that is on the employee's primary job on the last day of the filing period. Only the primary job's SOC code is reported per legal entity — not all assigned jobs. If an SOC code is updated mid-period, the code in effect on the last day of the filing period is the one reported.
Employees with multiple jobs
If an employee is assigned to multiple jobs, only the SOC code on the primary job for the legal entity is used for reporting. Other assigned jobs' SOC codes do not appear on filings.
Setting Up SOC Codes in R365
This section provides a task-oriented overview. Refer to the linked articles for detailed UI walkthroughs.
Step 1 — Confirm SOC Is Available
SOC and TTOC fields are available on the updated Job Form, which must be enabled for the organization before these fields can be used. This setting is managed by R365 and cannot be self-enabled. To request activation, contact R365 Support or a CSM.
Cannot see the SOC or TTOC fields?
If the SOC code field does not appear on the Job Form, the updated Job Form may not be enabled for the organization. Contact R365 Support or a CSM to request activation. The TTOC field only appears when the Tipped job checkbox is checked on the Job Form. If the job is not tipped, the TTOC field is hidden by design — this does not indicate a problem.
Step 2 — Assign Occupation Codes to Jobs
Open a Job Record and assign the appropriate occupation code on the Job Form. For non-tipped jobs, select the SOC code directly from the dropdown. For tipped jobs, check the Tipped job checkbox, then select the TTOC code — R365 will auto-fill the corresponding SOC code.
For jobs in states that require SOC codes (Alaska, Indiana, Louisiana, South Carolina, Washington, West Virginia), the SOC code field is required — the Job Form displays an error if the field is left blank. For jobs in all other states, the SOC code field is optional and can be left blank without triggering an error.
Correcting SOC and TTOC codes
SOC codes can be updated on the Job Record at any time. Changes take effect for the next filing period. For TTOC codes, which appear on W-2 forms, a correction after payroll has been processed may require a corrected payroll. If a TTOC code needs to be corrected after processing, contact R365 Support for assistance.
For detailed steps on creating and editing Job Records, see Job Records.
Step 3 — Confirm Employee Coverage
Once jobs have SOC codes assigned, employees inherit those codes through their job assignments. Jobs can be assigned to employees through:
The Employment tab on an employee record (manual assignment)
POS-driven job sync (automatic assignment from POS integration)
No additional SOC-specific steps are required on the employee record. Verify that employees in SOC-mandated states are assigned to jobs that have valid SOC codes configured.
For more information on assigning jobs to employees, see Add Or Edit Jobs On Employee Records.
Step 4 — Review SOC Coverage on the Jobs Grid
After assigning SOC and TTOC codes to jobs, use the Jobs grid to verify coverage across the organization. The grid includes SOC Code and TTOC Code columns that display the codes assigned to each job.
View SOC and TTOC codes: Open the Jobs grid from the Workforce module. The SOC Code and TTOC Code columns appear in the grid by default. If the columns are not visible, click Columns to add them to the grid view.
Filter for missing codes: Click Filter on the Jobs grid and set the SOC Code column to blank or empty. This surfaces any jobs that do not yet have an SOC code assigned — useful for identifying gaps before a payroll filing deadline. The same filter can be applied to the TTOC Code column to find tipped jobs that are missing a TTOC assignment.
Sort by SOC code: Click the SOC Code column header to sort jobs by their assigned code. This groups jobs with the same classification together, making it easier to spot inconsistencies or confirm that similar roles share the same SOC code.
Export SOC data: Use the grid's export option to download job data — including SOC and TTOC codes — as a file. This is helpful for auditing SOC coverage across multiple locations or sharing the data with a payroll team for review.
For detailed steps on working with the Jobs grid, see Job Records.
How SOC Codes Affect Payroll and State Tax Filings
Data Flow
SOC codes flow from Job Records through employee assignments into payroll processing and filings:
Job Record — Payroll admin assigns a SOC code (and optionally a TTOC code for tipped jobs) on the Job Form.
Employee assignment — When an employee is assigned to a job, the SOC and TTOC codes are inherited automatically.
Payroll processing — During payroll, R365 reads the SOC code from the employee's primary job for the legal entity.
State filings — The SOC code is included in SUI and wage filings for states that require it.
W-2 reporting — For tipped jobs, the TTOC code appears in Box 14b of the W-2 form.
Once SOC codes are assigned to all relevant jobs and employees are assigned to those jobs, the codes automatically flow into payroll processing and state tax filings. No additional configuration is needed for filing purposes.
Related Articles
Job Records — Create and edit Job Records, including SOC code assignment
Add Or Edit Jobs On Employee Records — Assign jobs to employees
Employee Records — Overview of employee record tabs and fields
Adding a Location to Payroll — location setup checklist including job and compliance review
Tax Filing Setup — Tax jurisdictions, SUI rates, and filing frequencies
Company Tax Profile — View tax profile and SUI rates for a payroll company
New Employee Checklist — Steps for setting up a new employee, including job assignment