Don’t be surprised by Ohio Workers Comp Premium Adjustments

Kirsch CPA Group

Aug 18, 2020

In an effort to reduce the burden to businesses during the COVID-19 pandemic, the Ohio Bureau of Workers Compensation has taken action that will result in lower advance premium payments during 2020. However, this action could result in a “true-up surprise” in August 2021.

In determining advance premium payments, BWC has automatically reduced wages for the 2020 premium year by 20%. While this may ease cash flow for this premium year, a significant true-up payment to Ohio BWC will be required to be made in August of 2021 if your company has not experienced a corresponding decline in wages.

Action Required

If you are projecting that your wages will decline 20% or more for the 2020 calendar year, we recommend taking no action. However, if you have not had a significant decline in your wage base and desire to not have a significant true-up payment in 2021, you can contact the Ohio BWC to have your estimated annual premium adjusted. Ohio BWC can be contacted from 7:30 AM to 5:30 PM Monday through Friday at 1-800-644-6292. Additionally, your service team at Kirsch can contact Ohio BWC directly to have this adjusted.

Please contact Hannah Bowling at Kirsch CPA at 513.858.6040 if you have additional questions.

More Resources

Guide: Next Level Accounting Services for Your Growing Business

Guide: Build a Better Business by the Numbers

Case Study: Strategic Accounting Support from Acquisition to Sale

About The Author

Kirsch CPA Group is a full service CPA and business advisory firm helping businesses and organizations with accounting,…

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