A $1 billion rebate is coming for Ohio employers who pay into the Ohio Bureau of Workers’ Compensation for employees on their payroll.
The BWC is mailing refunds of up to 56% of the premium that private employers paid in the period from July 1, 2011 to June 30, 2012. For example, an employer who paid $1,000 during that period may receive a rebate of $560. Public employers will also see a rebate.
Why are we getting a rebate?
The BWC approved the rebate because of a surplus in the fund for injured workers. (The Bureau invests the employer premiums and expects a 4 percent rate of return on their investment. Instead, the investment nearly tripled, earning the BWC 11.4% over the last three years.) Offering the rebate to employers will bring the BWC reserve back down to their established guidelines.
What are the qualifications for the worker’s compensation rebate?
The amount of the rebate depends on the employer’s status as of April 2013. Employers must be in an active, reinstated, combined, or debtor-in-possession status and current in their premiums. The BWC will reduce payments to employers who have outstanding balances. Employers will not receive a rebate if they do not meet all the criteria.
When will the rebate checks arrive?
The BWC started printing the checks in batches in late June. Employers who have been in business the longest will likely see their checks first. Employers participating in a Professional Employer Organization (PEO) will receive their rebates through their PEO organization. Private employers in the Group Retro Program will receive their checks in the fall.
For more information on the rebate, visit the Bureau of Workers’ Compensation website at www.ohiobwc.com.