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The Workers’ Compensation Oversight Commission passed a number of rules that may impact how employers manage their workers’ compensation coverage. According to Dan Rapp, OFBF senior director of business development, the following areas are of particular interest to employers:

Ohio Bureau of Workers’ Compensation (BWC) charges employers who reported zero or low payroll a minimum administrative cost to cover the cost of maintaining their workers’ compensation policy. Administrative fees include costs such as processing the initial application for coverage, processing annual or semiannual payroll reports and processing payments. BWC has increased the minimum premium/administrative fees to $100 annually. This rule will be implemented Jan. 1 and will affect all payroll reported on or after that date, regardless of the reporting period.

Previously, sole proprietors, members of partnerships, an individual incorporated as a corporation with no employees and officers of family farm corporations who elected to carry supplemental workers’ compensation coverage were required to report a minimum payroll of $100 per person, per week and a maximum of $800 per week, per person. Active executive officers of corporations had no minimum payroll requirement but did have the $800 weekly payroll maximum.

Under the new rule, employers in any of the categories above must report a minimum of $352 in payroll a week even if the amount earned was actually lower. In addition, BWC will raise the maximum payroll these individuals may report to $1,056 per week. These increases bring minimum and maximum reportable payroll to a level derived from the minimum and maximum compensation allowable based on the statewide average weekly wage calculated annually by the Ohio Department of Job and Family Services. The change ensures the reportable payroll for corporate officers and employers who choose elective coverage more fairly linked to the benefits received in the event of a work-related injury, disease or death. These rules will apply to the July 1, 2006 to Dec. 31, 2006 reporting period.

Rapp said these costs are not reduced by being a member of the OFBF Group Rating Program. Employers who have questions on any of the new rules should contact Kathy Redmond at GatesMcDonald, 614-854-8650.