The Ohio Bureau of Workers’ Compensation continues to work towards a prospective billing system that will be implemented in July for private employers. Holbrook & Manter is staying on top of these changes and we are committed to keeping you informed.
The BWC currently collects premiums after the coverage period has ended. Meaning, coverage is extended prior to the employer covering the costs. Beginning July 1, 2015, the BWC will require payment before they provide coverage. They will cover the transition cost with a credit and there will be no additional cost to employers.
Employers will receive an invoice for their 12-month period prior to the start of the policy year. During the first prospective year, employers will be asked to follow a specific installment plan that will result in six bi-monthly payments. In subsequent years, employers will be able to make payments in anywhere from 1 to 12 installments.
The BWC has shared the following timeline for private employers for the first prospective year (Jan. 1, 2015-Jan. 31, 2016):
- May 1, 2015: Estimated premium notice for policy year 2015 mailed
- June 1, 2015: Invoice mailed for first installment (BWC to pay)
- August 1, 2015: Invoice mailed for second installment
- August 31, 2015: Installment due and payroll report due for previous six months (no $ due for payroll report)
Remember, in order to receive an eight month transition credit from the BWC, your policy must be in good standing and the payroll report must be submitted. Upon completion of the report, your policy will be credited. If your policy has lapsed, you must rectify the situation before July 1, 2015.
Please contact your Holbrook & Manter advisor with any questions or concerns you may have. We would be happy to assist you.