Gary Sigman, CPA, M. Tax, PFS, AEP®
ATS Manager
As a business owner, you've likely received a letter from the Ohio Bureau of Workers Compensation ("BWC") that serves as a reminder of the billing changes for workers compensation premiums.
The former method of reporting taxable wages and paying the related tax no longer exists. The important next steps in the new prospective billing process (which begins July 1) are as follows:
- In early July, you will receive the BWC payroll report for the first half of 2015. This report is due by August 31 (as in the past), however, tax will not be owed with this report. BWC will pay the premium for this period (called a "transition credit") if the report is timely filed.
- In early August, you will receive an invoice from BWC, which is due by August 31. This represents the first payment that you will owe for the 2015 year.
- In early June of 2016, you will receive a 2016 premium invoice. By the end of the month, the first installment is owed for 2016.
- In early July of 2016, you will receive a annual payroll "true-up" notice, which is due by August 15, 2016. This report will reconcile the estimated payroll that was used in estimated your premium with the actual payroll. This replaces the semiannual report that has been filed in the past.
Related read:
Changes forthcoming to the Ohio Bureau of Workers’ Compensation
According to BWC, this new billing process will result in a 2% base rate reduction. For those will larger premium payments, more flexible payment options are now available as well. You will also be given the option to pay the premium over up to a 12 month period, if you so choose.Understanding workers compensation billing changes can be confusing. The Zinner team of financial and business advisors can help owners
to ensure their tax filing is accurate. Contact me at 216-831-0733 or
gsigman@zinnerco.com for a no cost, no obligation consultation.