Ohio Bureau of Workers’ Compensation Prospective Billing Changes – Summer 2015

Aug 14, 2015

Many businesses have received refunds from the Bureau of Workers Compensation (BWC) over the last two years due to fewer and much quicker return to work injuries. This has left workers’ comp with a huge surplus for refunding  and to offer the new transition credits.

shutterstock_57862405BWC previously charged for coverage after payroll wages were paid. Starting with the 2nd half payroll 2015, the program has changed and requires installments or payments to be made before coverage period begins. This change includes more flexible payment options – including monthly, bi-monthly, quarterly or annual payments instead of the 2 times a year and 50/50 payment plan.

In May, you should have received a letter from BWC with details regarding the estimated payroll and premiums for the reporting period of July 2015 – June 2016. The letter also included how much and when your premium payments would be due. The majority of employers have been set up to pay bi-monthly for the first year.

The Ohio BWC has reviewed your prior annual wages to determine your annual liability. However, if your company wages are expected to substantially increase or decrease, you will need to contact the BWC for an adjustment to your current payments. At the end of the payroll year (June 2016), each company will have to determine gross wages and compare it to the BWC’s estimate for the period of July 2015 – June 2016.

Each company should have received the normal wage report for January – June. You will be required to complete the form as done in the past, but NO payment is due upon mailing. In addition, you should have received the first installment invoice for your payment. The payment for this invoice is due by August 31st. If you do not have the original letter, you can log-on to your account on the Ohio BWC website to learn more about your payment schedule and liability amount for the next year.

If you fail to file the 1st half of the wage report before August 31st, you will not receive the BWC transition credit. The credit has already been applied to one of the installment payments. The BWC is “crediting/paying” the 1st half premiums normally paid and a new bi-monthly July/August payment has been determined for your company.

By: Sandra Stone, Accountant

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