As an employer, you currently pay the Ohio Bureau of Workers’ Compensation for coverage after you have received it. But starting in July 2015, all private employers will be migrated to a prospective billing system. This is being done to align with insurance industry standards. To stay compliant with the new rules and deadlines, here’s what you need to know:
- The transition to prospective billing will happen for private employers for the policy year beginning July 1, 2015 (public employers will transition in January 2016).
- Employers with accounts in good standing will receive a transition credit to help with the change. You must be in an active, reinstated, or debtor-in-possession status on July, 1, 2015 and must report your Jan. 1, 2015 – June 30, 2015, payroll by Aug. 31, 2015 to receive the transition credit. If you are in a lapsed status, there is still time to get “paid up” with the BWC – don’t miss out on this credit that could be a substantial amount of money!
- The Bureau of Workers’ Compensation will pay private employers’ first prospective installment in June 2015.
- The second prospective installment, paid by employers, is due by August 31, 2015.
- Employers will initially be set up on a bi-monthly (six installment) payment schedule, but you will have the option to change this to a schedule (from 1 to 12 installments) that better suits your business.
- Because the new payments are prospective, they must be reconciled on August 15, 2016 with the actual payroll for the prior policy year. This “true-up” will require employers to report their actual payroll figures, and pay any additional premium that may be owed. Or you will receive a refund if you have paid more than the final calculated premium.
Employers should be receiving a letter from the Bureau regarding these changes and deadlines. The Bureau is also offering seminars about prospective billing in May and June to provide detailed information about the program.
If you have questions about prospective billing, or your payments, contact the Bureau of Workers’ Compensation at 1-800-644-6292 or email [email protected]
Your Clark Schaefer Hackett advisors are available to assist you in navigating these changes and staying compliant.