Policy Name:	Employer of Record Change
Policy #:	EP-05-04
Code/Rule Reference	Ohio Administrative Code (OAC) 4123-17-02, 4123-17-15 and 4123-17-15.1.
Effective Date:	January 23, 2023
Approved:	Rex Blateri, Chief of Employer Services
Origin:	Employer Policy
Supersedes:	Employer of Record Change policy effective February 14, 2014.
History:	Revised January 23, 2023. New policy issued February 14, 2014.
Review Date:	January 23, 2028

 

I.       Policy Purpose

 

This policy describes the role of Employer Services in ensuring the Ohio Bureau of Workers' Compensation (BWC) has assigned a claim to the correct employer policy number.

II.     Applicability

The policy applies to BWC Employer Services, employers, state fund Alternate Employer Organizations (AEOs), and state fund Professional Employer Organizations (PEOs).

III.   Definitions

Employer of Record (EOR): Entity legally responsible for purposes of workers’ compensation as the employer for a claim filed by an injured worker.

IV.   Policy

A.      Employer Services staff may assist other BWC departments and units to ensure a claim has been assigned to the correct employer policy number. Employer Services staff may also refer to Claims Policy & Support’s Changing the Employer and/or Policy Number after Initial Determination policy and procedure.

B.      Primarily, Employer Services staff assist in determining a state fund policy number, AEO and client employer status, or PEO and client employer status, on the date of injury or occupational disease. In making this determination, Employer Services staff may:

1.      Review BWC records;

2.      Review provided records;

3.      Make a recommendation as to the correct policy number; and

4.      Ensure the proper computer systems are updated.

C.      Employer Services changes to the EOR on a claim.

1.      Employer Services staff will change the EOR on a claim when a state fund AEO enters into an AEO agreement, or terminates an AEO agreement, with a state fund client employer.

2.      Employer Services staff will change the EOR on a claim when a state fund PEO enters into a PEO agreement, changes a PEO agreement, or terminates a PEO agreement, with a state fund client employer.

3.      See the Alternate Employer Organizations (AEOs) and Professional Employer Organizations (PEOs) policy for additional information.

4.      Employer Services staff will change the EOR on a claim when an employer succeeds another employer, in whole or in part, in the operation of a business. See the Successorship policy for additional information.

D.     Employer Services staff may, as part of an employer audit or compliance issue, identify claims assigned to the wrong policy number. If such a claim is identified, Employer Services staff will communicate the information to Claims Services staff as follows.

1.      If the claim is incorrectly assigned to a policy number and the correct policy number is identified, Employer Services staff will do all of the following.

a.      Provide an explanation as to why the policy number should be changed.

b.      Provide a copy of the evidence relied upon for the policy number change. BWC considers the following items proof of employment:

i.        An injured worker's paystub for the date of injury that includes the employer's federal employer identification number (FEIN) as part of the printed form;

ii.      A W-2 for the date of injury year with box A containing the injured worker's Social Security number and box B containing the employer's FEIN;

iii.    A 1099 for the date of injury year with box RECIPIENT'S TIN containing the injured worker's Social Security number and box PAYER'S TIN containing the employer's FEIN; or

iv.     State Unemployment Employer's Report of Wages – Supplemental for the quarter in which the date of injury occurred. The report will show the injured worker's name, Social Security number, gross wages, and number of weeks worked.

c.       If the employer is the policyholder for both the correct policy number and the incorrect policy number, request the employer sign the State Fund Employer's Agreement to Accept Claim Assignment (C-263) or notify Claims Services staff if the employer refuses to sign the C-263; or

d.      If two unrelated employers are involved, request the incorrect employer sign the Request to Correct Employer and/or Policy Number Assignment (C-264), or an equivalent written statement that the policy number assignment is incorrect, and request the correct employer sign the C-263 or notify Claims Services staff if the correct employer refuses to sign the C-263.

2.      If the claim is incorrectly assigned to the employer, and the correct policy is not identified, Employer Services staff will:

a.      Provide verification the injured worker is not reported on any tax records and does not appear on any internal payroll records or expense categories for casual or spot labor; and

b.      Request the employer sign the C-264 or an equivalent written statement that the policy number assignment is incorrect.

E.      Employer Services staff may use the following resources in situations involving a self-insuring employer.

1.      For additional information regarding self-insuring PEOs and EOR changes, see the Self-Insured Professional Employer Organization Client Relationship Notification (UA-3SI) policy.

2.      Questions regarding an EOR change involving a self-insuring employer may be referred to BWC Self-Insured Inquiries.

F.      If a situation arises that is not covered in this policy, Employer Services staff may contact BWC Legal or the local BWC attorney for assistance.