OhioBWC - Basics: (Policy library) - File


Policy Name:

Minimum Administrative Charge

Policy #:


Code/Rule Reference

Ohio Administrative Code (OAC) 4123-17-26, 4123-20-04.

Effective Date:

July 1, 2015


Kevin R. Abrams, Chief of Employer Services


Employer Policy


Minimum Administrative Charge dated May 19, 2014.


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.