Ohio BWC Payroll True-Up: What Employers Need to Know Before the Deadline
For Ohio employers, the Bureau of Workers’ Compensation (BWC) payroll true-up is an annual requirement that can directly impact your workers’ compensation premiums. While it may seem like just another administrative task, failing to complete your true-up accurately and on time can lead to financial consequences and may affect your eligibility for certain BWC programs and discounts.
Here’s what employers need to know about the payroll true-up process, why it’s required, and when it’s due.
What Is the BWC Payroll True-Up?
Ohio BWC calculates workers’ compensation premiums based on an employer’s payroll exposure. At the beginning of each policy year, BWC establishes an Estimated Annual Premium (EAP) using projected payroll figures. For new employers, this estimate is based on payroll projections provided during the application process. For existing employers, the estimate is typically based on payroll reported in the previous policy year.
The payroll true-up is the annual process of reconciling those estimated payroll amounts with your actual payroll for the policy year. Employers must report their actual payroll and any differences are used to adjust premium amounts accordingly.
Why Is the Payroll True-Up Required?
The true-up ensures that employers pay workers’ compensation premiums based on actual payroll exposure rather than estimates. Since workforce sizes, overtime, seasonal fluctuations, and wages can change throughout the year, estimated payroll figures often differ from reality.
By completing the true-up:
- Employers who reported more payroll than originally estimated may owe additional premium.
- Employers whose actual payroll was lower than estimated may receive a premium credit.
- BWC can accurately assess the premium associated with the employer’s level of risk and payroll exposure.
In short, the true-up helps ensure that workers’ compensation costs are calculated fairly and accurately for all employers.
Who Must File?
All Ohio employers, both private and public, are required to file a payroll true-up report each year.
Some employers with no employees and a history of reporting zero payroll may qualify for a true-up waiver. Eligible employers are notified directly by BWC. However, if payroll was incurred during the policy year, a true-up report must still be filed.
When Is the Payroll True-Up Due?
Private Employers
- True-up reporting period begins: July 1
- Deadline to report payroll and pay any premium due: August 31
Public Employers
- True-up reporting period begins: January 1
- Deadline to report payroll and pay any premium due: February 28
It’s important to note that BWC no longer provides a grace period for payroll true-up reporting. To be considered timely, employers must submit their payroll information and pay any premium owed by the applicable deadline.
What Information Do You Need?
To complete your payroll true-up, you’ll need:
- An active OHID account
- Payroll information for the applicable policy year
- Access to BWC’s online payroll true-up reporting system
BWC requires employers to complete the true-up process online.
Don’t Wait Until the Last Minute
Gathering payroll data, verifying classifications, and reconciling records can take time, especially for employers with multiple locations, seasonal workers, or complex payroll structures. Completing your true-up early can help you avoid last-minute issues and ensure any premium discrepancies are addressed before the deadline.
If you have questions about payroll reporting requirements or need assistance navigating the true-up process, working with an experienced workers’ compensation partner can help ensure compliance and reduce unnecessary premium costs.
Need Assistance?
The Sheakley team can help Ohio employers understand payroll reporting requirements, monitor workers’ compensation costs, and navigate important BWC deadlines throughout the year. Contact us to learn how we can support your workers’ compensation program.
