Ohio Workers Compensation

https://info.bwc.ohio.gov/for-employers

When you’re looking to cut business expenses, Ohio Workers Comp is not the place you need to cut corners. Talk with your representative about what you can do to keep your rates as low as possible. Did you know that if you pay annually, you can save up to 2% off your annual rate?

Report any workers comp claims within 24 hours. Click here to see what to do when an injury occurs. 

Each employee must have an assigned BWC code—contact your Ohio BWC rep if you aren’t sure which code is right for that employee. 

Your Responsibility as a Business Owner: Staying On Top of OH BWC

Once your Ohio Workers’ Compensation (BWC) coverage is established, it’s essential that you, as the business owner, take an active role in maintaining it. That includes:

  • Retaining your Ohio Business ID login credentials
  • Logging into your BWC account at least once per year to download your updated Certificate of Coverage
  • Review your rates and policy details
  • Identify and contact your assigned BWC representative

At Fireside Tax, we’re happy to help you calculate BWC payments, review notices or letters you receive, and explain what your obligations mean—but ultimately, you are responsible for maintaining your policy and making any required business decisions.

We sometimes encounter the misconception that we’ll manage every detail or make decisions on your behalf. 🚫Wrong! While we can guide you and provide the information you need, certain decisions—like choosing a payment plan, selecting manual vs. payroll reporting, or directly communicating with BWC—must be made by you, the business owner.

Our job is to support, explain, and simplify—but staying compliant with Ohio BWC still requires a little help from you. Trust us, no one (except maybe us) wakes up excited to deal with BWC, and we totally get that.

Our goal is to minimize the time you spend in that portal or on the phone, but when we say, “It’s time to call your rep,” — we mean it. That’s your cue to jump in, make the decision, and then we’ll help you get right back out of the weeds.

Ohio BWC True Ups

https://info.bwc.ohio.gov/for-employers/reporting-payroll/filing-a-trueup-report

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.

It is important to note the the policy year is not January 1st to December 31st of one year it is July 1st to the following June 30th annually which really can be confusing for many business owners trying to track on their own. 

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 including any 1099 contractor payments for the policy year that corresponds to the true-up report you are filing

What you should expect
For private employers, the true-up period begins July 1. The deadline is Aug. 31.
There is no grace period for true-up as of July 1, 2025. This applies to true-up for policy year July 1, 2024 forward.

➖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.

How to Stay Ahead of Ohio BWC Payments

Every business is different when it comes to estimating what you’ll owe for Ohio Workers’ Compensation (BWC). But here’s the general idea:

Your BWC premium estimate is calculated by multiplying your assigned rate by your gross payroll.

  • If all employees are under one rate, it’s a simple calculation per pay period.
  • If you have multiple class codes or different rates per employee, you’ll need to calculate each one separately based on their gross wages, then total the amounts.

Planning Ahead to Avoid Owing at True-Up
Many businesses make quarterly estimated payments and then settle the difference during the annual True-Up process. As your wages increase, your BWC liability increases too—so it’s important to keep accurate records of what you’ve paid and what you’re likely to owe.

Example 1: Planning for Growth
Let’s say you paid a total of $10,000 to BWC this year (including both quarterly payments and your True-Up adjustment). You expect wages to rise slightly next year and want to prepare. A smart approach is to budget for $12,000 in total BWC payments for the upcoming year.

If you run payroll biweekly (26 pay periods per year), divide $12,000 by 26:
$12,000 ÷ 26 = $462
This means you should set aside $462 per payroll into a separate business “obligations” account. Doing this helps you stay compliant and ensures you won’t be caught off guard when payments are due.

Example 2: What If You Owe a Large Amount at True-Up?
Let’s say your True-Up bill comes in higher than expected and you owe $4,000. That’s a hit—but it’s also a signal. Your costs are likely to be just as high, or even higher, next year.

To stay ahead, take that $4,000 and divide it over your next 26 pay periods (assuming you’re biweekly)
$4,000 ÷ 26 = $154
Now you know you should set aside an additional $154 per payroll—on top of your normal BWC contributions—to catch up and stay on track for next year.

No Expensive Tools Needed—Just Planning and Discipline
You don’t need a third-party service or software to manage your BWC costs. With some basic math and the help of your accountant at Fireside Tax, you can build a system that keeps your business protected, compliant, and stress-free when true-up season rolls around. At Fireside Tax we typically begin calculating the true up reports every July. This way it gives us plenty of time to contact all the business owners we represent and give you time to arrange and make a payment.

If you’re unsure how to calculate your rates, manage your obligations, or catch up from a surprise balance, reach out to our team—we’re here to help.

 

What If You Can’t Afford the BWC True-Up Payment?
We understand—unexpected expenses happen, and sometimes your True-Up amount catches you off guard. If your business cannot pay the full Ohio BWC True-Up bill, don’t panic. There are steps you can take to stay in compliance and avoid penalties:

1. Don’t Ignore the Bill
The worst thing you can do is avoid the notice. Ohio BWC may assess penalties, interest, and even revoke your coverage if the balance is left unpaid. Address it as soon as possible.

2. Call Fireside Tax
Contact your accountant at Fireside Tax right away. We can:

  • Review the balance and help confirm the accuracy
  • Look at current and projected cash flow
  • Assist in setting up a payment plan if needed
  • Help you adjust payroll processes to avoid future surprises
  • Check your emails and junk folder, its not likely we wouldn’t have emailed you about your payments due.

3. Contact Ohio BWC
If you’re truly unable to pay the full amount, you may be eligible for a payment plan directly through BWC. You’ll need to:

  • Log in to your Ohio Business Gateway account
  • Navigate to your BWC account
  • Request a payment agreement or hardship accommodation
  • Let us know if you need help navigating that process.

4. Review Your Budgeting Process
Once you’re past this hurdle, we’ll help you reevaluate your savings strategy. Even setting aside a small amount per payroll can prevent this situation next year.

You’re not alone—Fireside Tax is here to help you through it. If you’re unsure what to do next or how to communicate with BWC, reach out. We’ll walk you through your options and work with you to get your business back on track.

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, the true up reporting may be waived.  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 may 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.