On the heels of the 2013 employer refunds, Ohio’s Bureau of Workers’ Compensation (BWC) is transitioning to a modernized billing system and more flexible payment schedule with the potential to save private employers 2% and public employers 4%.
The most significant impact on Ohio employers is the payment schedule. Effective summer 2015 for private businesses, employers will receive their invoice in June and begin paying premiums before July 1. While that is earlier than before, all employers will be able to make at least quarterly payments, and some will be able to pay in up to as many as 12 installments.
This change aligns BWC with standard industry practice and enables the agency to collect premiums before extending coverage. The bureau said it hopes the changes will provide more flexibility for employers and reduce overall costs.
Important Changes for Ohio Employers
- Employers looking to participate in programs such as group rating, group-retrospective rating or other rating plans will have the opportunity to make those selections sooner.
- An average employer will enjoy a one-time premium credit, as the BWC will cover the August 2015 payroll report (covering the January to June 2015 premium) as well as the prospective premium for the first two months (July and August).
- The BWC asks that businesses report or “true-up” their actual payroll for the prior policy year. This begins in August 2016.
Benefits of the New Billing System
- Overall base rate reduction of 2% for private employers and 4% for public employers.
- Opportunities for more flexible payment options (up to 12 installments).
- Better opportunities for BWC to provide quotes online or via the phone.
- Fewer costs from employers who either don’t pay premiums in a timely fashion or have workers injured without coverage being mutualized among employers in good standing.
- Increased ability for BWC to detect employer non-compliance and fraud.
This transition is effective July 1, 2015, for private employers, and Jan. 1, 2016, for public employers. For more information or to find out how this transition could affect your business, contact us today.