Revised Code (ORC) 4123.26, 4123.32, 4123.41; Ohio Administrative Code (OAC) 4123-14-03, 4123-17-14, 4123-17-14.2, 4123-17-16, 4123-17-17.
Blateri, Interim Chief of Employer Services
True-Up policy effective December 12, 2019.
23, 2022; March 8, 2021; January 31, 2020; November 27, 2018; December 2,
2016; September 8, 2016; August 11, 2016. New Policy issued July 15, 2015.
I. Policy Purpose
requires employers to file an annual payroll true-up and reconcile premium in
accordance with all applicable laws and rules.
This policy applies
to private employers (PA employers) and public employer taxing districts (PEC
employers), authorized representatives, and all BWC staff.
This policy does not
apply to self-insuring employers, alternate employer organizations (AEOs),
professional employer organizations (PEOs), or state agencies.
Good cause: A substantial reason, one that affords
a legal justification or legal excuse, as defined in OAC 4123-14-03.
Grace period: A time frame during which BWC will not assess
a penalty for late payments or late reporting.
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 will calculate any
premium obligation or credit for the completed policy year. Employers must pay
any premium obligation due at the time of reporting or post payment by the
established reporting due date.
After the conclusion
of each policy year, every PA employer and PEC employer, including employers
with zero payroll, must file an annual payroll true-up with BWC. The employer
must file online at www.bwc.ohio.gov or over the phone with a BWC staff
member who is authorized to complete the process.
The annual payroll
true-up must contain the total amount of wages paid to employees in each of the
employer’s assigned class codes over the applicable time period. If the amount
of wages is greater than zero, the employer must also report the number of employees
in each class code.
PA employers: By
PEC employers: By
BWC calculates the
difference between estimated gross payroll and actual gross payroll upon the
filing of the annual payroll true-up by using an electronic payroll
reconciliation process. This process adjusts the employer’s premium obligation
for the completed policy year.
The employer must
pay BWC any premium balance that is owed. The employer’s payment must be posted
by the true-up due date.
Any credit calculated
by BWC is applied to the employer’s account and released in the normal course
of business operations. Credits may be subject to further BWC review, including
BWC may establish a
grace period for the filing of the annual payroll true-up and the payment of
any premium balance that is due.
An employer may
amend its payroll by submitting the Amended True-Up Payroll Report (RPS-Amend P/R) form to BWC in writing. The amended
payroll report must be submitted within the timeframe outlined in OAC 4123-17-17(C)(2).
An employer who
submits an RPS-Amend P/R prior to the expiration of the true-up grace period
must remit full payment for any premium obligation owed. The employer’s payment
must be posted by the due date on the invoice for the true-up to be
If an employer
submits an RPS-Amend P/R after the expiration of the applicable true-up grace
period, BWC will process the RPS-Amend P/R as set forth in OAC 4123-17-17(C)(2).
Penalties for PA
employers and PEC employers who fail to true-up. BWC will not lapse the
employer’s coverage, however, BWC will apply the following penalties to the
BWC will remove the
employer from all rating and discount programs for the current policy year;
BWC will not
calculate any program bonus, incentive, or rebate for the most recently completed
The employer may be
ineligible for future program participation;
BWC will increase by
ten percent (10%) the estimated annual premium (EAP) and bill the employer;
BWC will certify the
premium balance to the Attorney General (AG) seventy-five (75) days after the
due date if not paid; and
BWC will recalculate
the EAP for any employer removed from a rating or discount program for the
current policy year. Future installment payments will be adjusted to reflect
the revised EAP.
As set forth in OAC 4123-14-03:
a. The BWC Administrator, for good cause
shown, may waive penalties for failure to file the annual payroll report or pay
An employer request
to waive penalties must be submitted to BWC. The employer must fully explain
the reason for the relief sought.
Employer complaints are
processed under the General Employer Complaint Policy. BWC staff will refer to section IV of
the General Employer Complaint Policy for examples of extenuating
circumstances. An employer with an extenuating circumstance that does not
qualify as good cause may be eligible for the one-time violation scenario
outlined in section IV.C.3 below.
As set forth in OAC 4123-14-03, for employer complaints filed on or
after December 12, 2019, the employer may show “good cause” if the default is a
one-time violation of the filing of the annual payroll report or the payment of
premium. This relief is also referred to as One-Time Forgiveness (OTF). For
additional information about the default of a premium payment, see the Retroactive Coverage and Penalty
Abatement policy. An
employer may use the Request for Retroactive Coverage and Penalty Abatement or
Waiver of Payroll True-Up Penalties (U-59) to file a request. To qualify for relief, the employer
Have filed the
annual payroll true-up and, if appropriate, posted payment for any premium owed
for the applicable policy year within fifty-nine (59) days of the due date or
any established grace period;
Have policy coverage
that is active or reinstated;
Be current with
respect to all payments due BWC, as set forth in OAC 4123-17-14; and
Be current on the
payment schedule of any part-pay agreement into which the employer has entered
for payment of premium or assessment obligations.