The Ohio Bureau of Workers’ Compensation’s (BWC) implementation of a new premium billing system is moving forward according to schedule. Beginning this summer, employers will begin to pay workers’ compensation premium on a prospective basis (as is the case with other insurance products) rather than retroactively as has traditionally been the process with BWC.
Be on the lookout for a Notice of Estimated Premium from BWC expected to be mailed by the end of this month. There are various types of correspondence the Bureau will be sending to employers – please see the attached sample copies as points of reference: Min. Premium – one installment; Active 6 installment; Reinstated after July 1; Lapsed employers. A reminder that these are NOT bills, but rather an advance notice of your annual premium for the 2015 policy year to help you plan and budget. Employers’ prospective premium will be based on historical payroll reported for the most recently completed policy year period (7/1/13 through 6/30/14). The first prospective premium payment will be due to BWC by August 31, 2015. Under the new system, employers will pay on a bi-monthly schedule but may select a different payment plan (annual, semi-annual, quarterly or monthly) by July 15. A reconciliation of projected-to-actual payroll and resulting premium will take place in the summer of 2016.