Snyder and Associates

 

Tax Byte

Workers' Compensation Premium Changes


Last year, we sent out a couple of Taxbytes informing you of changes coming to the Ohio workers' compensation system.  The most significant change is right around the corner as the Ohio Bureau of Workers' Compensation switches to a prospective billing system.

 

BWC has started sending out the first annual notice for estimated premiums and premiums schedules to Ohio employers for the upcoming policy year of July 1, 2015 to June 30, 2016.  The premiums are based on estimated payroll from amounts previously reported to BWC, payable over six bi-monthly installments beginning with June 2015 and ending in May 2016.  For this first year, BWC will be making the first payment for employers, making the employers' first payment under the new system due by August 31, 2015.

 

Employers have until July 15, 2015 to modify their payment schedule - available payment plans are monthly, bi-monthly, quarterly, bi-annually, or annually.  Annual installments will be due by August 31, 2015 - no back-end payments allowed.  After the July 15th deadline, employers will be locked in with the selected schedule for one year.  BWC will send out invoices for the premiums.

 

Also included in the letter is an important note that if a payment is missed, the policy will lapse and no coverage exists at that time.  Any claims incurred during the lapse period will be payable in full by the employer.  This is a significant change in the process - being late on an installment may not just be a matter of paying a fine.  Until this change is fully understood, employers need to pay especially close attention to the due dates they have selected.

We will cover this conversion in future TaxBytes as the issue is complex.  BWC has additional information available on their website, which can be accessed using this link.   

 

Included on BWC's website are several instructional videos regarding this change.  These videos can be accessed using the following Links:

 

"What is prospective billing?"  click here

 

"Explaining the Notice of Estimated Annual Premium"  click here

 

"How to change your premium installment schedule" click here

 

As always, if you have any questions, please give us a call or shoot us an email.


Victor E. Christopher, CPA, CVA

 

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