If you employ workers in Ohio, there is a good chance a check from the Ohio Bureau of Workers’ Compensation (BWC) is headed your way. The BWC has begun mailing paper checks as part of a recently approved $1 billion dividend for Ohio employers, and many businesses received an email notice this fall confirming their policy is eligible.
It is welcome news, but before that check gets deposited and spent, it is worth understanding what the Ohio BWC dividend is, what you need to do to receive it and how it could affect your business finances and taxes.
What Is the 2026 Ohio BWC Dividend?
The BWC Board of Directors approved a dividend of approximately $1 billion at the request of Ohio Gov. Mike DeWine. The dividend equals roughly 90 percent of the premiums employers paid in policy year 2022.
According to the BWC, the payout reflects strong fiscal management and investment performance. With this distribution, Ohio employers have received $10.2 billion in dividends during the current administration, which is more than employers paid in workers’ compensation premiums since 2019. Ohio premium rates are also at their lowest level in more than 65 years.
When Will Your Check Arrive?
The BWC is mailing paper checks throughout September and October. Here is what employers should keep in mind:
- Watch your mail. Checks are arriving by mail, not direct deposit, so make sure whoever handles your incoming mail knows to look for one.
- Deposit promptly. Each check remains valid for only 90 days after it is issued.
- Confirm your addresses. Log in to your MyPolicy page on the BWC website and verify that both the physical and mailing addresses on your policy are current.
- Check for balances owed. Your dividend will be reduced by any outstanding balance on your BWC account.
If your business recently moved, changed its name or restructured, those address and account details deserve a second look. A check sent to an old address can easily go uncashed past its 90-day window.
How the Dividend Could Affect Your Taxes
A BWC dividend is essentially a return of premiums you paid in an earlier year. If your business deducted those premiums as a business expense, the refund generally needs to be accounted for when you receive it, either as income or as a reduction of your workers’ compensation expense.
Since these checks are arriving in the fall of 2026, the dividend will likely show up on your 2026 return. For businesses organized as S corporations, partnerships or LLCs, that impact can flow through to the owners’ individual returns.
A few questions to consider:
- How should the dividend be recorded in your books, so it is reported correctly?
- Does the additional income change your estimated tax payments for the year?
- Are there year-end planning moves that could offset the added income?
The right answers depend on your entity type, accounting method and overall tax picture. Our tax services team can help you sort through the details.
Putting the Dividend to Work
“With this dividend, Ohio employers can continue helping their businesses thrive,” said Gov. DeWine in a prepared statement. “This approval reinforces our focus on supporting Ohio’s business community.”
The BWC has encouraged employers to reinvest the money in their businesses and in workplace safety. For many companies, that could mean:
- Upgrading equipment or safety gear that reduces injury risk
- Funding employee training or certification programs
- Strengthening cash reserves heading into the new year
- Paying down debt or funding planned capital projects
Some of these choices carry their own tax implications. Equipment purchases, for example, may be eligible for depreciation deductions that help offset the dividend income. Timing matters, so it pays to plan before year-end rather than after. Learn more about our business tax advisory services.
Talk to Your Zinner & Co. Representative
A dividend check is good news, but the way you account for it – and use it – can make a real difference to your bottom line. Contact your Zinner & Co. representative to discuss how this BWC dividend refund could impact your business, from tax reporting to year-end planning.
