After decades of charging Ohio businesses workers’ compensation premiums after coverage has been extended, the Ohio Bureau of Workers’ Compensation (BWC) will be transitioning to a prospective premium collection model this year. The new billing system is designed to provide more flexibility for employers while reducing overall system costs to the state. The change also aligns the BWC with the standard insurance industry practice of collecting premiums before extending coverage (e.g. property & casualty, general liability, etc.)
This change to prospective billing goes into effect on July 1, but there are some developments in May that are important to note.
In late May, BWC will mail all private employers a notice of estimated annual premium. This notice will be based on your reported payroll for July 1, 2013, to June 30, 2014. It is not a bill, but please review it for accuracy and contact BWC if you feel something is incorrect. This payroll will be used as the basis of your 2015 premium.
If you would like additional information, the BWC website has details about the changes and programs. Visit www.bwc.ohio.gov. Click on the Employers tab on the menu. Then select Prospective Billing under the Featured Links tab. You can also contact COSE’s Workers’ Comp team at 216-592-2351.