Ohio BWC Issuing $1.6 Billion to Ohio Employers
The Board of Directors of the Ohio Bureau of Workers’ Compensation (BWC) recently approved a proposal to send up to $1.6 billon to Ohio employers in response to the COVID-19 pandemic. The move stems from Governor Mike DeWine’s request for agencies to assist in easing COVID-19’s impact on businesses. DeWine stated that “employers will be able to reinvest these funds in their operations and their employees, which will further strengthen Ohio’s economy.”
This is the fifth time since 2013 the BWC has returned at least $1 billon to Ohio employers. Over the last ten years, the BWC has saved Ohio employers approximately $10 billion in workers’ compensation costs by way of dividends, credits, rate reductions and greater efficiencies.
The BWC stated strong investment returns, declining injuries and decreasing reserves made this particular dividend possible. The $1.6 billion is equivalent to the 88% of the premiums Ohio employers paid in the 2017-2018 policy year. The majority of the dividend will go to private employers, while the rest will be dispersed among counties, cities, townships and public school districts. Employers eligible for the dividend include:
- State Insurance Fund employers (private employers or public employer taxing districts only).
- Private employers that were billed premiums for the July 1, 2017 to June 30, 2018 policy period.
- Public employers that were billed premiums for the January 1, 2017 to December 31, 2017 policy period.
- Private employers in an active, reinstated, combined or cancelled (business sold or debtor-in-possession status) as well as having completed their payroll true-up for policy year 2017 as of September 6, 2019.
- Public employers in an active or reinstated status effective September 6, 2019; must have also completed their payroll True-Up for the 2017 policy year by September 6, 2019.
Payments will be issued to employers by check. The BWC intends to start sending checks to private and public employers at the end of September 2020, and to complete the process by the end of October 2020. If you have questions regarding the BWC’s response to COVID-19 please contact C. Awele Nwajei or Carrie L. Urrutia.
At the date of publication the above information was correct. It is quite possible the information above has changed as COVID-19 is a rapidly evolving situation.
The article in this publication has been prepared by Eastman & Smith Ltd. for informational purposes only and should not be considered legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney/client relationship.