Posted by: Gary M. Sigman, CPA, MTax, PFS
Beginning July 1, 2015, private employers will start saving money on their Workers’ Compensation premiums. The Ohio Bureau of Workers’ Compensation (BWC) is promising a 2% savings, which will result from streamlining their billing and collection system. A one-time credit will be issued to employers in July, 2015, to reflect these cost saving measures.
Most employers will begin to make quarterly installment payments for their workers’ compensation coverage, with some having the ability to pay up to 12 times a year. The invoices will be sent to employers in June of each year, and the premiums will be due beginning July 1. The BWC will be using a prospective billing system, as opposed to their previous practice of invoicing for prior liabilities. This means that employers will receive invoices based on estimated payroll amounts, and will have to adjust for their actual payroll in the following year. This initial adjustment will occur beginning in August, 2016.
Beginning this fall, those employers who are involved in the BWC group rating programs will have the ability to join or change groups earlier than before. Finally, when these changes are fully implemented, BWC will also be more adept in providing online (or via telephone) quotes, and in detecting fraud or non-compliance.
As this program was just recently announced, we expect to see more information become available, clarifying some of these open questions as time progresses. As updates are received, we will continue to keep you informed.
