COLUMBUS – The Ohio Bureau of Workers’ Compensation has proposed an economic development initiative that could discount a new Ohio employer’s premium by as much as 51 percent. If approved by the BWC Board of Directors, Grow Ohio would offer eligible employers a 25 percent discount on their workers’ compensation premiums for two years, or give them immediate access to participation in the Group Experience Rating Program.
“Employers have many factors to consider when choosing a location, and the costs of conducting business, including workers’ compensation, are high on that list,” said BWC Administrator/CEO Stephen Buehrer. “By lowering the initial premium of new businesses, Grow Ohio is freeing up more money for those companies to invest in job growth and help restore prosperity to Ohio.”
Under Grow Ohio, new employers will receive the 25 percent discount on their workers’ compensation premiums unless they elect to participate in another program incompatible with the Grow Ohio discount. The discount will be applied for the payroll period in which a new employer’s coverage becomes effective and the four subsequent, six-month payroll periods.
If they prefer, new employers may instead elect to immediately participate in the Group Experience Rating Program, which normally is not accessible to new employers until the first full policy year following the date they obtain workers’ compensation coverage. Employers have 30 days to decide whether to pursue the Group Rating option, or the 25 percent discount will be automatically applied.
Participation in group rating could reduce their premiums up to the maximum allowable amount, which is currently 51 percent for the July 1, 2011, policy year.
If approved by the board on September 29, the incentives will apply to new business entities or out-of-state businesses that are new to Ohio and report payroll in Ohio on or after July 1, 2011. Those incentives would be reflected on bills employers pay beginning in February 2012.
Source: Ohio BWC