Governor DeWine, BWC propose $1.5 billion for Ohio employers
Governor Mike DeWine and BWC Administrator/CEO Stephanie McCloud on Monday proposed giving $1.5 billion to Ohio employers this year following strong returns on the agency’s investments.
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CLIENT ALERT: Prospective Billing True-Up Process Deadline
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
Ohio BWC Prospective Billing Switch Begins July 1
July 1, 2015 marks the beginning of the new policy year for the Ohio Bureau of Workers’ Compensation (BWC) prospective billing schedule for private employer premiums. Employers should receive letters over the next few weeks outlining their estimated premium installment schedules for the first policy year from July 1, 2015 to June 30, 2016.
Ohio BWC made this change from retrospective to prospective billing to align the agency with industry standards, and anticipates program benefits will include more flexible payment options and better budget anticipation for employers.
Important Dates for Ohio BWC Prospective Billing:
- July 1, 2015: Policy Period and Prospective Billing Begins
- Ohio BWC is paying first installment as a continuation of the transition credit employers received for the first half of the year
- Aug. 31, 2015: First payment due from Ohio employers
- Nov. 2, 2015: Payment due from Ohio employers
- Dec. 31, 2015: Payment due from Ohio employers
- Mar. 2, 2016: Payment due from Ohio employers
- May 2, 2016: Payment Due from Ohio employers
- Aug. 15, 2016: Employers must file a report to reconcile payroll estimates previously paid vs. actual payroll amount for previous policy year (AKA “Payroll True-Up”)
- If “True-Up” is not reported on time, the employer could lose coverage immediately and may be subject to other penalties/fines
(The switch will take effect on Jan. 1, 2016 for public employer taxing districts.)
Free seminars and webinars from Ohio BWC are available for employers to learn more about how prospective billing will impact your business. Click here to see scheduled webinars.
Ohio BWC also launched the “Destination: Excellence” risk-management program, that features incentives and savings programs, to coincide with the switch to prospective billing. To learn more about the programs available and understand the benefits of the program, check out this Ohio BWC brochure.
If you have questions about Ohio BWC’s switch to prospective billing, please contact your Whalen representative.
More information: Ohio BWC Prospective Billing Resources and FAQs