Starting July 1, private employers will be able to pay their annual workers’ compensation premiums in two, four, six or 12 installments. This change was recently approved by the Ohio Bureau of Workers’ Compensation (BWC) Board of Directors as part of the agency’s switch to prospective billing.
Currently, the agency bills after coverage is extended, but as of July, private employers will pay in advance for workers’ compensation coverage. This change in billing will offer a number of benefits, including a 2.4 percent overall base rate reduction for private employers and an increased ability to detect employer non-compliance and fraud.
The new payment process will involve paying premium based on estimated payroll for the upcoming coverage year and undergoing a payroll true-up process after the policy year ends to ensure the proper premium was paid. BWC will provide a premium credit to eliminate transition costs for employers.
Private employers will receive a notice of estimated annual premium (like this sample) in early June. The notice of estimated annual premium is not a bill. It will include information about how to request changes to estimated payroll as well as how to choose a different premium installment schedule and how to file a payroll true-up report at the end of the policy year. The notice will also explain how BWC calculates your premium, including the total estimated payroll and premium for each manual class.
If your estimated payroll is different than what appears on your notice of estimated annual premium, please call BWC at 1-800-644-6292 to ensure that your business is paying the most accurate premium.
BWC is holding prospective billing seminars for private employers around the state; webinars are now available as well. Visit bwc.ohio.gov for seminar dates and additional prospective billing information. Click here to sign up for a webinar.
