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OhioBWC - Basics: (Policy library) - File

Multistate Jurisdiction Payroll and Coverage

Policy Name:

Multistate Jurisdiction Payroll and Coverage

Policy #:

EP-18-01

Code/Rule Reference:

ORC 4123.01(M)(2), 4123.29 (A(2)(c))4123.292, 4123.54(H)(1) , 4141.01 and OAC 4123-14-06, 4123-17-14, 4123-17-23 and 4123-17-24.

Active Date:

July 1, 2015

Origin:

Employer Policy

Supersedes:

All policies and procedures regarding Interstate Jurisdiction that predate the Actice date of this policy.

History:

January 1, 2009

Review Date:

July, 2020

 

 

I.       Policy Purpose

 

The Bureau of Workers’ Compensation (BWC) provides guidance in applying the laws and rules on payroll reporting of Ohio employers with employees performing temporary duties outside Ohio and to out-of-state employers on determining when Ohio coverage is required.

II.     Applicability

 

This policy applies to BWC Underwriting and Premium Audit, Field Operations, Legal, Call Center, Business Consultants, Other States Coverage, private/public employers and their authorized representatives.

III.    Definitions

A.    Estimated annual premium (EAP): The annual estimate of premium utilizing the estimated payroll and approved rates.  BWC’s premium estimates are based on the most recently completed policy year of actual payroll multiplied by the employer’s blended rate for the policy year being estimated. New employers applying for coverage on or after July 1, 2015, are required to provide twelve (12) months estimated payroll on the U-3 application for coverage form.

B.    Extraterritorial Coverage: Ohio workers’ compensation coverage for an Ohio employee who is injured while temporarily performing duties outside the state; or, the recognition of another state’s coverage for a non-Ohio employee who is temporarily working in Ohio.

C.    Payments due BWC: Any premiums, administrative costs, assessments, penalties or monies otherwise due to any fund administered by BWC for which the employer has not submitted a dispute of the obligation to the bureau's adjudicating committee as set forth in OAC rule 4123-14-06.

D.    Payroll or wages: Amounts paid by an employer to employees in the employer's service for the applicable period; includes remuneration.

E.    Remuneration: Generally speaking has the same meaning as defined in ORC division (H) of section 4141.01 which includes all compensation for personal services, including commissions and bonuses and the cash value of all compensation in any medium other than cash.

1.     Use of this definition in no way obligates BWC to follow payroll reporting requirements or the methodology to determine employee status used by Ohio Jobs and Family Services. (ODJFS).

2.     For employees who usually receive tips or gratuities, remuneration includes all actual wages paid and all tips to the extent they are used to supplement federal minimum wage requirements.

F.     True-up: Annual reconciliation of estimated payroll and actual payroll. All employers must file annual payroll after the conclusion of the policy year. BWC will calculate any premium obligation or credit for the completed policy year.

IV.   Policy

A.    Location of Employment

1.     Ohio workers’ compensation coverage is required for employees hired to work specifically in Ohio, regardless of where the contracts of hire were entered. Payroll for such employees shall be used to calculate EAP and the actual payroll reported in True-up.

2.     Although Ohio extraterritorial coverage will respond to an injury, wherever such injury has occurred, this insurance may not constitute compliance with the laws of another state and does not supersede the jurisdictional requirements of the state in which the injury takes place.

B.    Payroll

1.      Ohio Supervising Office: The payroll of employees whose employment involves activities both inside and outside the borders of Ohio, and where the supervising office of the employer is located in Ohio, shall be used to calculate the employer’s Ohio EAP.

a.     An employer may elect to obtain other-states' coverage under ORC section 4123.292  directly through an other-states insurer.

b.     If such election is made the employer shall include in the Ohio actual payroll reported in True-up only the payroll for work the employees perform in Ohio as set forth in OAC rule 4123-17-14(I) and other work not covered by the other-states' coverage.

2.     Payroll involving transitory services in interstate commerce: The payroll of employees of out-of-state employers, who have entered into a contract of employment outside of Ohio to perform transitory services in interstate commerce only, both inside and outside of the boundaries of Ohio, shall not be used to calculate Ohio EAP and shall not be included in the actual payroll reported in True-up.

3.     Out-of-state employees working temporarily in Ohio: BWC recognizes the extraterritorial workers' compensation insurance coverage of an out-of-state employer for its regular employees who are residents of a state other than Ohio while temporarily performing work in the state of Ohio.  The payroll of employees temporarily working in Ohio shall not be used to calculate Ohio EAP and shall not be included in the actual payroll reported in True-up.

a.     Effective September 17, 2014, Ohio law recognizes the extraterritorial coverage of an out-of-state employer for a temporary period not to exceed ninety (90) consecutive calendar days. Multiple temporary periods with each exposure less than ninety-one (91) calendar days in duration are distinct temporary periods.

b.     If a temporary period exceeds ninety (90) consecutive calendar days the out-of-state employer shall include in the Ohio actual payroll reported in True-up the payroll for work an employee performed in Ohio beyond that ninety (90) day period.

c.     The ninety (90) day exemption is not applicable to residents of a foreign country. Employers that have foreign employees working temporarily in Ohio shall be used to calculate Ohio EAP and the actual payroll reported in True-up payroll for work the employees perform in Ohio.

C.    Resolution of Complaints

1.     Employer complaints should be processed under the General Employer Complaint Policy.

2.      BWC has not identified any extenuating circumstances that apply to Multistate Jurisdiction Payroll and Coverage Issues.

 


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