I.       Policy Purpose

The Ohio Bureau of Workers’ Compensation (BWC) will apply the minimum administrative charge to employers in accordance with all applicable laws and rules.

II.     Applicability

The policy applies to private employers (PA employers), public employer taxing districts (PEC employers), marine industry fund employers, authorized representatives, BWC Finance, Employer Services, and Call Center.

III.   Definitions

A.      Disabled Workers’ Relief Fund (DWRF) assessments: Amounts billed to employers to fund DWRF.

B.      Experience modification: An adjustment applied to the base rate as defined in OAC 4123-17-03(D).

C.      Pure premium: The premium calculated using the payroll, base rate, and experience modification, excluding DWRF assessments.

IV.   Policy

A.      BWC establishes an annual minimum administrative charge for PA employers and PEC employers who report zero payroll or report payroll resulting in a premium of less than the minimum administrative charge.

1.      If the employer reports zero payroll, the employer will pay a minimum annual administrative charge of $120.

2.      If the employer reports payroll resulting in a pure premium less than the minimum administrative charge of $120:

a.      BWC will apply an adjustment to the employer's account equal to the difference between the employer's calculated pure premium and the minimum administrative charge amount.

b.      The employer will pay DWRF assessments associated with the pure premium in addition to the $120 charge.

3.      The $120 minimum administrative charge is effective:

a.      For PA employers, the policy years beginning on or after July 1, 2015.

b.      For PEC employers, the policy years beginning on or after January 1, 2016.

B.      BWC sets the minimum administrative charge at $50 semi-annually or $100 annually for marine industry fund employers.

1.      These charges apply to payroll reports submitted on or after July 1, 2012.

2.      BWC will charge the minimum administrative amount to a marine industry fund employer that estimates zero payroll or calculates estimated premium due less than the minimum administrative amount.

C.      The minimum administrative charge does not apply to:

1.      Prior to coverage payroll periods.

2.      Self-insuring employers and state agencies.

D.     Minimum premium requirements for Coal-Workers’ Pneumoconiosis Fund employers are set forth in OAC 4123-21-03.