OhioBWC - Basics: (Policy library) - File

Guaranty Fund Assessment New Self-Insuring Employer


Policy Name:

Guaranty Fund Assessment: New Self-Insuring Employer

Policy #:


Code/Rule Reference:

Ohio Administrative Code (OAC) 4123-19-15(C)

Effective Date:



Self-Insured Department/Employer Services



Review Date:

November 1, 2021



I.       Policy Purpose


This policy details the guaranty fund assessment (GFA) for new SI employers.


II.     Applicability


This policy applies to new self-insuring (SI) employers and the Self-Insured Department.


III.    Definitions


A.    Self-insuring Employer (SI Employer): An employer that has been granted the privilege of paying compensation and benefits directly.

B.    Self Insured Review Panel (SIRP): A panel of three (3) persons appointed by the BWC administrator to provide employers with hearings on matters referred to the panel, or as requested by the employer.


IV.   Policy


A.    Pursuant to OAC 4123-19-15(C), a new SI employer is required to pay a guaranty fund assessment (GFA) for the first three years of self-insurance.

1.     The GFA assessment shall not apply to subsidiary entities added to the coverage of an existing self-insuring policy after the first three years of self-insurance of the existing policy.


B.    The GFA shall be calculated at 6% percent of base rate premium, based on reported payroll for the most current complete policy year. The calculated rate will apply for all three yearly assessments. If the annual reported payroll represents less than 12 months of total payroll, the payroll will be annualized to calculate the GFA.

1.     Example: If eight (8) months payroll equals $8,000,000 ($1,000,000 a month) then the annualized payroll = $12,000,000, thus the GFA equals ($12,000,000 payroll x 2.00 base rate/100 x .06 = $14,400).

2.     The minimum annual GFA for new self-insuring employers is $5,000.


C.    BWC invoices the GFA at the SI policy effective date and the next two (2) anniversary dates thereafter.



V.     Resolution of Complaints


A.    Any complaints or disputes related to this policy must be submitted in writing to the SI Department via mail or email as detailed in the Self-Insured Employer Dispute/Protest Policy.


Ohio Bureau of Workers’ Compensation

Self-Insured Department

30 W. Spring St., 22nd Floor

Columbus, Ohio 43215-2256

Email: SIINQ@bwc.state.oh.us.


B.    If the SI employer disagrees with the SI Department’s formal written response, the SI employer may file a written request to appeal the decision to the Self Insured Review Panel (SIRP).