Executive summary: The much anticipated Ohio Bureau of Workers Compensation (BWC) billing system will be switching to a prospective method on July 1st. Private employers who are current and up-to-date with filings and payments will enjoy an 8-month premium credit to ease the transition. Private employers that are not current must take action now to preserve the credit. Since new billings will be prospective, the BWC bills will be based on estimated payrolls, as calculated by the BWC. Very important: private employers should carefully analyze these estimates, when received, to ensure accuracy, and report any discrepancies to the BWC immediately.
Full text: The BWC is updating its billing system this summer to bill prospectively rather than in arrears as it has in the past. As a result, private employers in an “active status” on July 1 will be eligible to receive a premium credit equal to eight months of workers’ compensation coverage. “Active” status entails being up-to-date on BWC filings and payments, and so, the BWC will establish payment plans to allow employers to come in to compliance and be eligible for the credit.
The new prospective billing method takes effect July 1, which will mean that private employers will be required to pay the previous 6 months of coverage premium (previous method), plus 1/6 of the policy year 2015 premium due August 31st.
To be eligible for the 8-month credit, private employers must be in “active status” by July 1, and so employers that are behind in filings or payments, or with lapsed coverage must take the following actions immediately, before July 1:
1) Report unreported payroll for currently lapsed payroll periods;
2) Pay any outstanding premium, late fees and penalties for assessed premium;
3) Request a payment plan for any premium amounts that cannot be paid in full.
As the new prospective billings are based on estimated payrolls as calculated by the BWC, private employers are encouraged to review these invoices carefully to ensure accuracy, and to contact the BWC immediately with any discrepancies. Click here to read more about Prospective Billing Information and Resources from the BWC.
Apple Growth Partners team members are committed to assisting you to ensure you qualify for the premium credit and to answer any questions you have regarding the new prospective billing system. Contact us any time so that we may assist you.