Policy
Name:
|
Minimum
Administrative Charge
|
Policy #:
|
EP-13-02
|
Code/Rule
Reference
|
Ohio
Administrative Code (OAC) 4123-17-26, 4123-20-04.
|
Effective
Date:
|
July 1,
2015
|
Approved:
|
Kevin R.
Abrams, Chief of Employer Services
|
Origin:
|
Employer
Policy
|
Supersedes:
|
Minimum
Administrative Charge dated May 19, 2014.
|
History:
|
New policy,
issued August 22, 2006; Revised May 19, 2014; July 1, 2015.
|
Review
Date:
|
July 1,
2020
|
I. Policy Purpose
The
Ohio Bureau of Workers’ Compensation (BWC) will apply the minimum
administrative charge to employers in accordance with the applicable laws and
rules.
II. Applicability
This
policy applies to private employers (PA), public employer taxing district
employers (PEC), marine industry fund employers, authorized representatives,
BWC Policy Processing, Finance, Employer Services, Field Operations, and Call
Center.
III. Definitions
A.
Assessments: Amounts billed to employers to fund the
administrative (operating) costs of BWC and the Industrial Commission of Ohio
and the Disabled Workers’ Relief Fund (DWRF).
B.
Experience
modification: An adjustment
applied to the base rate as defined in OAC 4123-17-03(D).
C.
Pure premium: The premium calculated using the
payroll, base rate, and experience modification, excluding administrative cost
and Disabled Workers’ Relief Fund (DWRF) assessments.
IV. Policy
A.
BWC sets the annual
minimum administrative charge for PA and PEC employers as follows:
1.
If the employer
reports zero payroll, the employer will pay a minimum annual administrative
charge of $120.
2.
If the employer
reports payroll resulting in a pure premium less than the minimum
administrative charge of $120:
a.
BWC will apply an
adjustment to the employer’s account equal to the difference between the
employer’s calculated pure premium and the minimum administrative charge amount.
b.
The employer will
pay assessments associated with the pure premium in addition to the $120 charge.
3.
The $120 minimum
administrative charge is effective:
a.
For PA employers:
Policy years beginning on or after July 1, 2015.
b.
For PEC employers:
Policy years beginning on or after January 1, 2016.
B.
BWC sets the minimum
administrative charge at $50 semi-annually or $100 annually for marine industry
fund employers.
1.
These charges apply
to payroll reports submitted on or after July 1, 2012.
2.
BWC will charge the
minimum administrative amount to a marine industry fund employer that estimates
zero payroll or calculates estimated premium due less than the minimum
administrative amount.
C.
The minimum
administrative charge does not apply to:
1.
Prior to coverage payroll
periods.
2.
The following
employer types:
a.
Self-insuring
employers.
b.
State agencies.
D.
Minimum premium
requirements for black lung employers are set forth in OAC 4123-21-03.