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.
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.
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.
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.
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.
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).
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.
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.
A. Location of Employment
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
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.
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.
employer may elect to obtain other-states' coverage under ORC section 4123.292 directly through an other-states
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.
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.
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.
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.
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
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 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.