Ohio BWC & Worker’s Compensation

https://info.bwc.ohio.gov/for-employers
Report any worker’s comp claims within 24 hours. Click here to see what to do when an injury occurs. 
Save 2% on BWC costs by paying annually!
Each employee must have an assigned BWC code—contact your Ohio BWC rep

Ohio BWC True Ups

Ohio BWC determines employer premiums based on the amount of payroll (exposure) reported multiplied by a specific rate. At the beginning of each policy period, they set an estimated annual premium (EAP) as follows.

For a new employer, we’ll establish your estimated annual premium by using the 12-month payroll estimate you submitted on your application for workers’ compensation coverage.

For an existing employer that had coverage before this policy period, we’ll establish your estimated annual premium by using the estimated payroll from the previous policy year.

At the end of the policy year, we must ensure the estimated premium we set for you was correct. To do this, you must file a true-up report that reflects the actual payroll for that policy year. You must complete the report online using the Payroll true-up reports service offering.

Who is this for?
All Ohio employers (public and private) must file a true-up report.

What you’ll need
An OHID account
Payroll information for the policy year that corresponds to the true-up report you are filing

What you should expect
For public employers, the true-up period begins Jan. 1. The deadline is Feb. 15.
For private employers, the true-up period begins July 1. The deadline is Aug. 15. This deadline is for most of Fireside’s clients.
If your true-up payroll exceeds the estimated payroll, you’ll owe additional premium.
If your true-up payroll is less than your estimated payroll, you’ll receive a premium credit.
To be considered timely, you must report payroll and pay any premium due by the deadline.

Ok so how do you prevent owing ever? Every client is different to estimate BWC for but generally you take the multiply your BWC rate(s) against your total gross pay each payroll. Subtract the taxes and net pay and you have the amount that you need to set aside each payroll. 

Or

Lets say at True Up time you the company unexpectedly owe $4,000. Ouch! Ok one way to look at it is take that 4000 and divide by the number of pays you have in a year. Lets assume bi weekly so 26 pays. 4000/26 = $154 rounded. Save $154 per pay on top of your normal payroll costs and you’ll be fine. No need to pay for other services to help you stay ahead of BWC costs, just math skills and discipline are needed. 

Waived true-up
For the policy year beginning July 1, 2023, certain employers may have their true-up requirement waived. If you have reported zero payroll and no employees in the past, we may waive true-up reporting. You will be notified by mail if you are eligible for this waiver. If you continue to have no employees, you are not required to submit a true-up report. We will complete the true-up report on your behalf and report $0 in payroll. The criteria for having the true-up waived will be reviewed each year and a new letter will be sent if you are still eligible. Those receiving the true-up waiver letter will not receive any true-up reminders from us.

However, if you hired employees and had payroll during the policy year, you are still required to report that payroll and file the payroll true-up report online by the deadline.