Jurisdiction Payroll and Coverage
ORC 4123.01(M)(2), 4123.29
(A)(2)(c), 4123.292, 4123.54(H)(1), and 4141.01; OAC 4123-14-06, 4123-17-14, 4123-17-23, and 4123-17-24.
July 1, 2020
Warren, Interim Chief of Employer Services
Jurisdiction Payroll and Coverage policy effective July 1, 2015.
Jurisdiction Payroll and Coverage policy was revised July 16, 2020; July 22,
2016. Previously, the Interstate Jurisdiction policy was effective from January
1, 2009, to June 30, 2015.
I. Policy Purpose
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.
policy applies to BWC Underwriting and Premium Audit, Other States Coverage,
employers, and their authorized representatives.
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.
compensation coverage obtained by an Ohio employer from a private or state-run
insurance carrier in another state.
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.
Payroll or wages: Amounts paid by an employer to
employees in the employer's service for the applicable period; includes
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.
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
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
True-up: Annual reconciliation of estimated
payroll and actual payroll. All employers must file annual payroll electronically
after the conclusion of the policy year. BWC calculates any premium obligation
or credit for the completed policy year. Employers must pay any premium
obligation due at the time of reporting or by the established reporting due
Employment and Injury.
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 estimated annual premium (EAP) and the
actual payroll reported in True-up.
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.
Office. The payroll of employees whose employment involves activities both
inside and outside Ohio, and where the supervising office of the employer is
located in Ohio, shall be used to calculate the employer’s Ohio EAP.
An employer may
elect to obtain other-states' coverage under ORC section 4123.292 directly through an other-states
If such election is
made, the employer shall include in
True-up only the payroll for work the employees perform in Ohio, and other work
not covered by the other-states' coverage, as set forth in OAC rule 4123-17-14(I).
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.
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.
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.
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. Payroll for foreign employees
working temporarily in Ohio shall be used to calculate Ohio EAP and the actual
payroll reported in True-up.
C. Election to Obtain Non-Ohio Coverage for
Employees Working Outside of Ohio.
1. Ohio law allows employers to obtain
coverage in other states, in addition to their Ohio coverage, to cover
employees who perform work outside of Ohio on a temporary basis.
An employer electing
non-Ohio coverage must file a completed Notice of Election to Obtain Coverage
from Other States for Employees Working Outside of Ohio (U-131) form with BWC.
The employer must
include a copy of the insurance policy issued by the insurer from the other
state with the U-131 that is submitted to BWC.
Both documents must
be mailed to: BWC Policy Processing Department, 30 W. Spring St., 22nd Floor,
Columbus, OH 43215.
Division of payroll
and premium payment requirements.
The employer must
report payroll to BWC for work done outside of Ohio and covered under the
employer’s non-Ohio coverage. The employer must use the online Payroll reports service offering on BWC’s website. This
reporting is for record-keeping purposes only, subject to the exception set
forth in section IV.C.4.
The employer must
report payroll and pay premium to BWC for all work its employees do in Ohio.
See the Prospective Billing Installment Payments and Payroll True-Up policies for additional information.
If an employer fails
to pay premium for its non-Ohio coverage, BWC considers the employer
noncompliant for the purposes of having non-Ohio coverage. BWC then calculates
the employer’s premium according to Ohio workers’ compensation law using both
the payroll reportable to Ohio and the non-Ohio coverage insurers.
An employer may obtain
coverage in other states through BWC. See the Other States Coverage Policy (OSCP) for additional information. Additionally,
the U-131 form to report out of state payroll is not required for an OSCP
Employer complaints are
processed under the General Employer Complaint Policy.
BWC has not
identified any extenuating circumstances that apply to Multistate Jurisdiction
Payroll and Coverage Issues.