Work it Out Blog

Ohio BWC is Transitioning to Prospective Billing in July of 2015

May 18, 2015
The Ohio Bureau of Workers’ Compensation currently charges premiums on previous payroll, which means the BWC extends coverage prior to receiving premiums for the coverage period. To bring the system in-line with insurance industry standards, the BWC is adopting prospective billing.  With prospective billing, the  BWC will now charge premiums on future payroll and will base the premium amount on an estimate of previously reported payroll. This new system becomes effective for private employers on July 1, 2015 and for public employers on January 1, 2016.
Private employers will be charged a prospective premium in July based on projected payroll for the July 1, 2015 – December 31, 2015 coverage period. A transition credit will be given to avoid paying double premiums – a premium for actual payroll paid in January 1, 2015 – June 30, 2015 and a new prospective premium.  To receive this transition credit, employers must be in active, reinstated, or debtor-in-possession status on July 1, 2015 and must report their January 1, 2015 – June 30, 2015 actual payroll by August 31, 2015.
In January of 2016, when you report actual payroll for July 1, 2015 – December 31, 2015, you may also be charged a true-up premium if actual payroll exceeds the projected payroll base used to calculate the prospective premium. Failure to report payroll in a timely manner in January of 2016, or failure to pay any true-up premium charge, will result in program disqualification for the current policy year and potentially disqualify you for future periods. If your BWC policy has lapsed, we can help you get it reinstated by July 1.  We can also assist if you receive a prospective premium amount you believe to be inaccurate or if you cannot afford to fully pay any true-up premium charge.  Contact your Day Ketterer Attorney at with any questions on the new BWC prospective billing system.

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.