Work it Out Blog

Prospective Billing Reminders

Jul 14, 2015

Prospective billing began for private employers on July 1, 2015.  Prior to this change, the BWC charged workers’ compensation premiums on previous payroll.  Under prospective billing, premiums will be charged on future payroll, in line with insurance industry standards.

Ultimately, this change would require employers to pay a double premium in July 2015, as they would be required to pay the January 1, 2015 – June 30, 2015 premium under the old billing, in addition to the new prospective premium.  To avoid double premiums, the BWC is offering a transition credit to companies that were in an active, reinstated, or debtor-in-possession status on July 1, 2015. Employers who wish to receive the transition credit must report payroll to the BWC by August 31, 2015.

Estimated premiums for prospective billing will be based on prior payroll amounts.  Any employer that has reason to believe their reported payroll amount is incorrect, or that anticipates a change in payroll, may contact the BWC to adjust their estimated payroll.

Private employers will be placed on a six-installment payment plan. If you have any questions regarding prospective billing, or other BWC matters, please call Michelle Reese or your Day Ketterer attorney, at 330-455-0173 or info@dayketterer.com.

The content of this blog is for informational purposes only and is not intended as legal advice for any purpose. This blog is not intended to present an exhaustive summary of all applicable laws, or to take the place of legal advice.  If you have any questions regarding the law, please contact us for assistance.