In the past, BWC has sent a payroll report requiring you to write in your actual premium from the prior six month period, multiply by the rate on the bill and pay the indicated premium. For the January 1, 2015 – June 30, 2015 period you will receive the same report (in July 2015) but will only need to report the payroll and multiply by the rate, but not pay that premium.
The Move to Prospective – Raise the Anchor, Full Steam Ahead!
In May 2015 BWC will report the estimated premium that they will be billing you for the 7/1/2015 – 6/30/2016 period. This estimate will be based on the historical payroll you reported (7/1/2013 – 6/30/2014) applied to your new rates for July 1, 2015, including any group rating discounts you have earned, as available through the Defiance Area Chamber of Commerce and V & A Risk Services. This annual premium will be broken down into 6 equal payments. As part of the transition credit, BWC will forgive the first payment for the 7/1/15 – 8/31/15 period.
Your first prospective payment will be due to BWC by 8/31/15. That payment will forward your coverage from 9/1/15 through 10/31/15. Consequently, by 10/31/15 you will make a payment that will forward your coverage from 11/1/15 through 12/31/15. Rinse and repeat.
BWC will be requiring all employers to go online by 8/15/16 & “true-up” their payroll. That means reporting what you actually had in payroll from 7/1/15 – 6/30/16 and paying any shortage in premiums during the past year. If you overpaid premiums, BWC will issue a credit.
If you are like me, a visual display of this would be helpful. To see a full color timeline that we developed to help employers understand this transition, click here.
BWC will reward employers with a 10% average decrease in July 1, 2015 rates, of which 2% is attributed to the move to prospective billing.
Look for future updates here as there is never a dull moment in Ohio Workers’ Compensation!
Ken Finley is a Sr. Rate Analyst for V & A Risk Services which provides eligible Defiance area employers with discounted BWC premiums through the DACC Group Rating Program. To discover how much you can save, please e-mail email@example.com. Include your BWC policy number and contact information.