Snyder and Associates

 

Tax Byte

Major Changes Coming to Ohio's Workers' Compensation (Part 1)

Beginning next year (July 2015), Ohio’s workers’ compensation will be moving from a system in which employers pay premiums in arrears to one in which employers will pay premiums in advance.  Prospective payment of premiums is commonplace within the insurance industry, and the Bureau of Workers’ Compensation (BWC) has indicated that this change will modernize the injured worker insurance system, reduce employer premiums, provide employers with flexible payment options, and enhance BWC’s ability to detect non-compliance and fraud.

This is a major conversion, and BWC is implementing steps to prevent “double billing” of employers in July 2015 (i.e., a retrospective bill for the January 2015 – June 2015 coverage period and a prospective bill for the July 2015 – December 2015 period).  To address the double billing potential, BWC will be providing a one-time premium credit that will cover the January 2015 – June 2015 period for all private employers, as well as the first two months of the first prospective rating period (July and August of 2015).

BWC will also be changing certain program deadlines and reporting requirements as a result of this conversion.  We will provide details about those changes in our next TaxByte.

As always, if you have any questions, please give us a call.

 

 

Victor Christopher, CPA, CVA

 

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