Columbus, OH – With the state’s new fiscal year now underway, the Bureau of Workers’ Compensation is calling on its private employer members to participate in the final step of the agency’s transition to prospective billing.
The “True-up” window opened July 1 and closes at the end of business Aug. 15. A critical step in BWC’s new prospective billing of premiums, employers are required to report their actual payroll for the policy year ended June 30, 2016 and reconcile any differences in premium paid.
“This step is an important part of BWC’s ongoing efforts to modernize operations and provide better service to Ohio’s employers,” said BWC Administrator/CEO Sarah Morrison. “It’s also necessary for BWC to accurately calculate an employer’s premium and for employers to maintain their participation in current rating plan or discount programs.”
BWC began its switch to a prospective billing last year and now collects premiums upfront, an insurance industry standard practice. The new system has allowed BWC to reduce base rates and offer employers more flexible payment options while allowing employers to better forecast their workers’ compensation costs.
BWC will remove employers from their current rating plan or discount program if it does not receive a payroll true-up by the due date. Any outstanding payroll true-ups will render the employer ineligible for participation in future rating plans or discount programs until all outstanding payroll true-ups are complete. Employers must complete the true-up report even if their payroll for the year matches the estimate received from BWC.
BWC has issued several notices this year reminding employers of this important action, which can be completed online. The quickest and easiest way to true-up is online with a BWC e-account. Online true-up and payment also qualifies eligible employers for a 1-percent premium rebate, up to a $2,000 maximum.
Source: Ohio BWC