The Bureau of Workers’ Compensation just announced the timetable for moving to a modernized prospective payment system. As state fund employers are well aware, Ohio workers’ compensation premium is one of the few bills paid after the fact; payments for private employers are made in August and February for the six months which end on June 30 and December 31. All of this will stop in 2015 as the Bureau moves to a prospective payment system.
The way the new system will work is that employers will be sent a bill in July 2015 in which they will be asked to report their estimated payroll for the six months beginning on July 1 and pay their premiums prospectively. The good news is that the Bureau of Workers’ Compensation will forgive the payment which is then due in August 2015. This will also include the first two months of the prospective premiums for July and August 2015. In other words, the Bureau will give state fund employers eight months of free coverage.
The Bureau will “true up” the estimated payments with the actual payroll in August 2016.
For public employers, the system will be transitioned in early January 2016.