Sedgwick Update

Reportable payroll & true-up Reportable payroll In defining payroll, the Ohio Bureau of Workers’ Compensation (BWC) generally follows the guidelines of the Ohio Department of Job and Family Services, as well as the Federal Unemployment Tax Authority (FUTA) in the businesses section. Examples of reportable payroll The more common types of reportable payroll include gross hourly wages and gross salaries less qualifying deductions for section 125 cafeteria plan benefits, sick pay and vacation pay, bonus payments, including stock given as a bonus, sales commission and tips. Contact BWC or go to www.bwc.ohio.gov, select For Employers/Compliance/ Reporting Payroll for a complete list of reportable payroll. You may also contact Sedgwick’s Rate Department at (800) 825-6755 with any questions. True-up process BWC provides workers’ compensation coverage based on estimated payroll. Therefore at the end of the policy year, BWC asks employers to report their actual payroll for the prior policy year and pay any shortage (or receive a refund for any overage) in premium. This process is called a true-up. If the true-up is not completed timely, the following may occur: • Employer will not be eligible for prior year rebates and incentives • Employer will be removed from current year programs • Employer will become ineligible for programs the following year and will continue to remain ineligible for all future years until all past true-ups are completed.

Estimating Payroll for Workers' Compensation Premium

The Bureau of Workers’ Compensation (BWC) has begun installment billings for Private Employers for the July 1, 2022, rate year. Your premium payments for the rate year are based on the installment schedule that you selected. In July of 2023, you will receive your annual Payroll True Up Report from the BWC, where you will report your actual payroll for the July 1, 2022, rate year. If your actual payroll How to report payroll and complete the true-up was lower than the BWC’s estimate of your payroll, you will receive a refund on your premium. If your Although employers may contact BWC at (800) OHIO-BWC actual payroll was higher than the BWC’s estimate of your payroll, you will pay additional premium based on your higher payroll. (800.644.6292) and complete their true-up report over the phone, BWC anticipates high call volumes and long wait times. They To determine your estimated payroll for the July 1, 2022, rate year, the BWC is using the payroll that you strongly encourage employers to complete their true-up report reported for the July 1, 2020, through June 30, 2021, period. For many businesses, the July 1, 2020 online through their BWC e-account at www.bwc.ohio.gov. If you through June 30, 2021, payroll is much different than today’s payroll. Due to that, you could see a larger do not have an e-account, simply select the Create E-Account Link than expected billing when the BWC sends the annual True Up Report in July of 2023. to begin. You will need your BWC policy number and/or Federal Tax You have the ability to review the estimated payroll that the BWC is using for your business, and Identification Number. request a change to your estimated payroll, if needed. In doing so, the BWC will adjust future Premium Installment Payments to reflect the new estimated payroll. This could help limit any surprises that may Additional rebates occur when you receive your annual Payroll True Up Report in July of 2023. If you have more than one Additional rebates are available should an employer utilize their active policy with the Ohio BWC, you will want to review all estimated payroll amounts for each policy. e-account through the BWC’s website. Eligible employers will qualify To review your payroll, you can log in to your BWC account at www.bwc.ohio.gov or by calling the BWC at 800.644.6292. for a 1 percent Go Green premium rebate (up to $2,000 maximum) by filing electronically. To be eligible for the Go-Green Rebate, you must complete the true-up online and pay any balance at that time as well as opt in to invoice email notifications. If you have any questions, contact our Sedgwick program manager, Bob Nicoll, at (330) 418-1824 or robert.nicoll@sedgwick.com.

Hierarchy of hazard control

One of the keys to a safe workplace is evaluating, identifying, and eliminating hazards. There is a step-by-step Deadlines process available called the “Hierarchy of Controls.” The hierarchy of controls can be an effective tool to reduce PRIVATE EMPLOYERS the frequency and or the severity of injuries at your workplace and ultimately help reduce workers’ compensation • True-up report must be completed and costs. This 5-step process was created in the 1950’s and is still used today. payment received no later than August 13, 2021. The chart identifies the preferred way to control a hazard from the most effective which is elimination. Then the order follows the next preferred method using Substitution, then Engineering Controls, Administrative Controls PUBLIC EMPLOYERSthen the least effective, Personal Protective Equipment (PPE). •Let’s take a deeper look into each “Hierarchy of Control.” True-up report must be completed and payment received no later than February 15, 2022.

Reportable payroll & true-up Reportable payroll In defining payroll, the Ohio Bureau of Workers’ Compensation (BWC) generally follows the guidelines of the Ohio Department of Job and Family Services, as well as the Federal Unemployment Tax Authority (FUTA) in the businesses section. Examples of reportable payroll The more common types of reportable payroll include gross hourly wages and gross salaries less qualifying deductions for section 125 cafeteria plan benefits, sick pay and vacation pay, bonus payments, including stock given as a bonus, sales commission and tips. Contact BWC or go to www.bwc.ohio.gov, select For Employers/Compliance/ Reporting Payroll for a complete list of reportable payroll. You may also contact Sedgwick’s Rate Department at (800) 825-6755 with any questions. True-up process BWC provides workers’ compensation coverage based on estimated payroll. Therefore at the end of the policy year, BWC asks employers to report their actual payroll for the prior policy year and pay any shortage (or receive a refund for any overage) in premium. This process is called a true-up. If the true-up is not completed timely, the following may occur: • Employer will not be eligible for prior year rebates and incentives • Employer will be removed from current year programs • Employer will become ineligible for programs the following year and will continue to remain ineligible for all future years until all past true-ups are completed.

1. Elimination – This is where the hazard is removed. This can be achieved by either changing the work process like removing a sharp or heavy object. As you can see this is the preferred control method because it completely removes the hazard from the employee. 2. Substitution – The second preferred method relies on substituting the hazard with a safer alternative. For example, eliminating a chemical by using those made from eco-friendly or plant-based products. If How to report payroll and complete the true-up Although employers may contact BWC at (800) OHIO-BWC you choose substitution be sure to review and understand the new potential risks of the product, if there are any. (800.644.6292) and complete their true-up report over the phone, BWC anticipates high call volumes and long wait times. They 3. Engineering Controls – This option prevents or reduces the hazard from coming into contact with the strongly encourage employers to complete their true-up report employee. Some examples of engineering controls are workspace or equipment modification, creating protective barriers or installing ventilation. online through their BWC e-account at www.bwc.ohio.gov. If you do not have an e-account, simply select the Create E-Account Link to begin. You will need your BWC policy number and/or Federal Tax 4. Administrative Controls – This option for reducing workplace hazards relies on work practices that Identification Number. reduce duration, frequency, or intensity of the job. Examples include work process training, job rotation, adequate rest breaks or adjusting line speeds. Additional rebates Additional rebates are available should an employer utilize their 5. Personal Protective Equipment – The last option which is the least effective is PPE. This is where e-account through the BWC’s website. Eligible employers will qualify employees are required to wear items, such as safety glasses, gloves, hearing protection, hard hats, and for a 1 percent Go Green premium rebate (up to $2,000 maximum) by filing electronically. To be eligible for the Go-Green Rebate, you respirators. Many times, PPE will be used temporarily while other controls are under development. must complete the true-up online and pay any balance at that time as well as opt in to invoice email notifications. Before implementing the “Hierarchy of Controls,” you must first identify the hazards. A good way to achieve this is to create a team with areas of expertise (Maintenance, Department Managers/Supervisors, Employees, EHS, Deadlines etc.). Once the hazards are identified, the team should discuss the “Hierarchy of Controls” and identify the most PRIVATE EMPLOYERS • True-up report must be completed and effective means of dealing with the hazard. Then, work your way down until you find a solution. Remember to payment received no later than August 13, periodically re-evaluate the control method as new technology may allow you to implement a more effective control means. 2021. For more information, please contact Sedgwick’s PUBLIC EMPLOYERS Andy Sawan at 330.819.4728 • True-up report must be completed and or andrew.sawan@sedgwick.com payment received no later than February 15, 2022.

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