If you did not reduce your workforce this year,
you may owe money to BWC in August!
Ohio's private employers pay their workers' compensation premiums based on a July 1 - June 30 policy year. The Ohio Bureau of Workers' Compensation (BWC) establishes an estimated premium for each employer for the policy year. Installment payments are based upon a schedule chosen by the employer. At the conclusion of each policy year, BWC requires all employers to reconcile the payroll amount that was used to estimate their premium with their actual payroll amount for the policy year (payroll true-up). The payroll true-up is due on or before August 15.
Due to the potential impact of COVID-19, the 2020 Policy Year Renewal and Notice of Estimated Annual Premium letter mailed earlier this year included a reduction of 20% of the estimated annual payroll amount for the policy year that began July 1, 2020. This ultimately resulted in a reduction in the estimated annual premium for such policy year.
If a business did not have a reduction in workforce over the past months, it is likely the business will owe more than expected when filing the true-up report, in some cases the amount may be substantial.
There is no penalty or interest assessed on the balance due, however, some businesses may want to start to pay the balance due as part of their remaining premium installment payments. If a business would like to adjust the remaining premium installment payments, the business should contact (call or email) their BWC account representative as indicated on the business’ my policy page of the BWC online portal.
