Policy Name:
|
Minimum Administrative Charge
|
Policy #:
|
EP-13-02
|
Code/Rule Reference
|
Ohio Administrative Code (OAC) 4123-17-26,
4123-20-04.
|
Effective Date:
|
July 1, 2024
|
Approved:
|
Rex Blateri, Chief of Employer Services
|
Origin:
|
Employer Policy
|
Supersedes:
|
Minimum Administrative Charge dated July 1, 2015.
|
History:
|
Revised August 2, 2024; July 1, 2015, May 19, 2014. New
policy, issued August 22, 2006.
|
Review Date:
|
July 1, 2029
|
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.