BWC Transitions to Prospective Billing for Private Employers

July 17, 2015

The Ohio Bureau of Workers Compensation (BWC) is transitioning to a prospective billing cycle effective with the start of their new fiscal year July 1, 2015.  “Prospective billing” is an insurance industry standard practice that will enable the BWC to collect premiums before extending coverage.

The BWC will also move to an annual policy period instead of the semi-annual period that was followed in the past.  In order to make for a smooth transition for employers, the BWC will provide an eight-month transition credit that will cover the period January 1, 2015, through June 30, 2015, as well as the first two months of the new fiscal year, July and August 2015.

Employers will still be required to file a report for the first half of 2015 even though no premium will be due.  Report forms were mailed out on July 1st and must be filed no later than August 31, 2015, in order to receive the transition credit.

In early June, employers were mailed their first notice of estimated annual premium for the new fiscal year along with their annual certificate of coverage. During this first year of transition, employers will be setup on a bi-monthly payment plan, with the first installment (covering July and August) being covered by the BWC transition credit. An invoice for the second installment will be mailed in early August, with payment due by August 31. BWC will mail invoices 30 days prior to the due date of each installment.

At the close of fiscal year ending June 30, 2016, employers will be required to file a report of actual wages for the previous policy year and a “true-up” calculation will be done at that time to determine if additional premium or credit is due for the policy year.  The true-up report must be filed online or by phone no later than August 15, 2016.

For companies that complete their returns online, the “Go Green” rebate is still in effect. The rebate is 1% of payroll, up to $2,000.

The BWC has issued a document that provides an overview of the Prospective Billing change.

Contact us if you have any questions about these changes or the effect the transition credit will have on the BWC expense for the 2015 calendar year.

About the Authors

James E. Merklin
James E. Merklin
Partner, Assurance and Advisory


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