CLIENT ALERT: Prospective Billing True-Up Process Deadline

Kathleen Hargrove on August 9, 2016

Last July, the Ohio Bureau of Workers’ Compensation (BWC) modernized their billing system and switched to Prospective Billing. This change has affected private employers, and includes a new true-up process to reconcile differences in premiums paid. The reporting change has been in effect since July 1, 2015, with installment payments made during the year. The deadline to submit this annual true-up report for the reporting period of 7/1/2015 thru 6/30/2016 is fast approaching.

The true-up report MUST be completed and payment received no later than next Monday, August 15.  Please allow two business days for payments to be posted by BWC to your account.

What is the true-up process?

  • BWC provides worker’s compensation coverage based on estimated payroll
    • Installment payments were required to be made during the reporting year, with the installment total estimated using prior year reported payroll
    • At the policy year end, employers must report their actual payroll for the prior policy year
    • Employers will either pay any shortage or receive a refund for any overage

What happens if the true-up is not completed before the deadline?

  • BWC will remove employers from their current rating plan or discount programs
  • Employers with outstanding true-ups will be ineligible for participation in future rating plans or discount programs
    • Employers will be eligible again after all outstanding true-ups are submitted
  • BWC will put any plans in a “lapse” category
    •  Claims during the lapsed period will not be covered by workers compensation

As an additional reminder, the next installment payment for the NEW reporting year will be due 8/31/2016. This payment is separate from the True-up reporting for the PRIOR reporting year that is due 8/15/2016.

We hope this information has been helpful to you. If you think this change could affect you or you have any further questions, please contact your Whalen & Company representative.

 

Source: https://www.bwc.ohio.gov/employer/brochureware/prospectivebilling.asp