Revised Code (ORC) 4123.26, 4123.32,
Ohio Administrative Code (OAC) 4123-14-03, 4123-17-14,
Warren, Interim Chief of Employer Services
True-Up policy effective August 1, 2018.
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 the 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 or professional employer organizations (PEOs).
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
impose a penalty for installment payments, and true-up payroll reports,
received after established due dates.
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 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
The annual payroll
true-up must contain the total amount of wages paid to employees in each of the
employer’s assigned manual classifications 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 manual classification.
PA employers: By
August 15 immediately following the conclusion of the policy year.
PEC employers: By
February 15 immediately following the conclusion of the policy year.
BWC will calculate
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 will adjust the employer’s premium obligation
for the completed policy year.
The employer must
pay BWC any premium balance that is owed by the true-up due date.
calculated by BWC will be applied to the employer’s account and released in the
normal course of business operations. Credits may be subject to further BWC
review, including audit verification.
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 by the due date on the
invoice for the true-up to be successfully completed.
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 policy year;
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, the BWC Administrator, for good cause shown, may waive penalties
for failure to file, or pay amounts due under, the annual payroll report.
Employer complaints are
processed under the General
Employer Complaint Policy. BWC staff will refer to section IV of
the General Employer Complaint Policy for:
extenuating circumstances that do not qualify as good cause. Depending on the
date the employer’s complaint was filed, an employer in this circumstance may be
one-time forgiveness” (GOTF) scenario outlined in section IV.D below; or
violation scenario outlined in section IV.C.3 below.
extenuating circumstances that do qualify as good cause.
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. For additional
information about the default of a premium payment, see the Retroactive
Coverage and Penalty Abatement policy. To qualify for relief,
the employer must:
Have filed the
annual payroll true-up and, if appropriate, paid 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.
forgiveness (GOTF). The intent of GOTF is to implement the governor’s executive
Effective July 1,
2015, each employer had one GOTF. The GOTF may only be used for employer
complaints filed between July 1, 2015, and December 11, 2019. The GOTF may be
used for a:
Default of a premium
installment payment that occurs after July 1, 2015. (See Retroactive
Coverage and Penalty Abatement policy); or
Failure to file the
annual payroll true-up (see scenario below).
Once GOTF is used,
it is no longer available to the employer. The employer may not rescind a prior
requesting GOTF does not waive the employer’s right to file additional requests
for relief under a different extenuating circumstance that would qualify under
the General Employer Complaint Policy.
GOTF should only be
used if the employer has not otherwise established good cause for the failure
Scenario: Failure to
file an annual payroll true-up that occurs between July 1, 2015, and December
BWC will allow an
employer, who cannot otherwise establish good cause, to use GOTF for relief
from one violation of the payroll true-up deadline and waive any other
penalties associated with the violation.
All of the following
conditions must be met in order to grant the employer’s request:
The request must be
in writing and specify that the employer is requesting GOTF of the late true-up
and any penalties associated with this scenario.
The employer must
have filed the annual payroll true-up within fifty-nine (59) days of the due
date referenced in section IV.A.3 of this policy or within fifty-nine (59) days
of any established grace period.
iii. The employer must meet all of the
requirements listed in section IV.C.3 of this policy.