Starting July 1st, 2020, the BWC reduced every employers payroll by 20%. They did so under the assumption that all employers experienced slow-downs, lay-offs and closures during the initial impact of COVID-19 on Ohio businesses. However, they did not confirm these reductions with policyholders and we know that not all businesses experienced a decrease.This reduction might result in an unexpected True Up balance July. True Up is a process required by Ohio BWC at the end of each policy year, where your premiums based on projected payroll are balanced with premiums based on your actual payroll for the past year. Compliance with both the reporting and payment of any balances affects your companys eligibility for most savings programs. If your actual payroll was higher than projected, you will be expected to pay that balance to Ohio BWC no later than August 15th. If you are unable to pay the lump sum at that time, please note that any future premium installments will first be applied to your
Ohio BWCs Net Position (as of March 2021) $12.5 Billion in surplus as of 12/31/2019 $7.6 Billion in surplus as of 12/31/2020 Potential Dividend this fall will be based on how their investments perform. Administrative Fee Increase BWCs administrative fee is an amount that is baked into premiums, and will see a drastic increase in the coming policy year. For many, this will devalue the 7.1% (avg.) base rate decrease recently announced. Also, keep in mind that the rate reduction announced is not applied evenly across all manual codes. 2020 20.32% of premiums 2021 31.56% of premiums In addition, the BWC transferred $25,000,000 from the state fund to the admin fund. If you want to find out how this will impact your 2021 premiums or have any other questions about this, please email Jennifer Kantorowski. She can be reached at firstname.lastname@example.org.