The deadline is approaching for private employers to “true-up” with the Ohio Bureau of Workers’ Compensation (BWC).
A press release posted on the Ohio BWC website reminds employers they have until Aug. 15 to complete an important action necessary for the BWC to accurately calculate premiums.
According to the press release, prior to each policy year (July 1- June 30), employers' payroll amount, the basis for their premium, is estimated based on historical data. When the policy year-ends, employers are required to true-up, which means they must report the actual payroll for the policy year that ended on June 30 and reconcile any difference in premium paid.
In a prepared statement, Ohio BWC Chief Financial Officer Barbara Ingram said the true-up is necessary for the BWC to confirm the premium they set is correct, which is why they ask private employers to complete the true-up report. It must be completed even if an employer had zero payroll, or their payroll for the year matches the estimate BWC provided.
“It’s a simple online process but extremely important to accurately calculate premium and for employers to maintain participation in current money-saving rating plan and discount programs,” she said.
The benefits of completing the true-up process before the deadline outweigh the dangers of not completing the report, said Zinner & Co. Partner Brett Neate, CPA, MTax.
The benefits of the true-up process ensure premiums are calculated properly and employers can continue to participate in their current rating plan or discount program.
Neate said both the payment of premiums and the submissions of the true-up report are required to maintain Workers’ Compensation coverage. The Ohio BWC will remove employers from their current rating and discount programs if it does not receive a payroll true-up and any additional premium owed by the deadline.
These penalties, Neate said, can be costly.
“The impact to a company is completely dependent upon their overall premiums in relation to the rating plan or discount program from which they are benefitting,” he said. “The financial hit of missing out on those rate reductions could be substantial – particularly for employers with a high number of employees.”
Employers can true-up online with a BWC e-account. Online true-up and payment also qualifies eligible employers for a 1 percent premium rebate, up to a $2,000 maximum.
Regardless of who prepares the true-up, Zinner & Co. is happy to provide guidance and answer any questions that may arise. Contact us at email@example.com or 216.831.0733 to help your company remain in BWC compliance.