Don’t Forget – Ohio BWC Prospective Billing To Begin This Summer
Employers in Ohio should have received by now a Notice of Estimated Premium from the Ohio Bureau of Workers’ Compensation (BWC). This notice is part of BWC’s move toward a new, prospective billing system for workers’ compensation premium. Beginning in August, Ohio employers will begin to pay workers’ compensation premium for a coverage period in the future rather than in arrears. The BWC Notice of Estimated Premium mailed last month advises employers what their annual premium will be for the 2015 policy year period (July 2015 through June 2016) and the payroll used to calculate that premium.
As BWC transitions to this new payment model, employers will follow a bi-monthly payment schedule. Under this payment plan, the first prospective premium payment will be due by August 31, 2015 and will apply to coverage in September and October. Subsequent premium payment deadlines are:
November 2, 2015 (November/December coverage)
December 31, 2015 (January/February coverage)
March 2, 2016 (March/April coverage)
May 2, 2016 (May/June coverage)
If employers prefer a different payment plan (monthly, quarterly or semi-annually), they will need to notify BWC by July 15, 2015. In addition, if there have been significant changes to employers’ operations that have impacted payroll, employers may want to communicate those changes to BWC to determine a more accurate premium.
One final important reminder is that BWC will also mail a payroll report for the January 2015 through June 2015 coverage period by early July. Employers will need to report payroll for this period, but do NOT need to pay premium. BWC will provide a credit for this premium to prevent a double payment as they transition to the new model. In addition, BWC will provide a credit for the first two months of premium in the 2015 policy year (July and August).