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Tax Byte

Major Changes Coming to Ohio's Workers' Compensation (Part 2)

In our last TaxByte, we provided information about the Ohio Bureau of Workers’ Compensation’s (BWC) future change from premiums being paid in arrears to being paid prospectively.  This change will take effect in July 2015; however, there are other key dates prior to next July that will impact Ohio’s employers.

Employers will still have until September 2, 2014 to report payroll for the January – June 2014 coverage period (normally the deadline is August 31st, but the 31st falls on a Sunday and September 1st is Labor Day).  One key deadline for many employers is the date for signing up for group rating.  This deadline is now the Monday before Thanksgiving, beginning with November 24, 2014).

“Group Retrospective Rating”, the “Deductible Program”, “Individual Retrospective Rating”, and the “One Claim Program” will have sign up deadlines of the last business day in January (January 30, 2015).Employers who participate in BWC’s “Destination: Excellence” programs will have a sign up deadline of the last business day in May (May 29, 2015).

In addition to the changes above and those noted in our Part 1 TaxByte, BWC will modify the reporting of payroll.  At the end of each policy year, employers will be required to reconcile their actual payroll against the payroll estimated for the prospective premiums.  BWC is referring to this reconciliation as a “true-up”.  The first True-Up report will be due by August 15, 2016 for the July 2015 – June 2016 coverage period.

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

Victor Christopher, CPA, CVA

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