The Ohio Bureau of Workers’ Compensation continues to promote its “Better You, Better Ohio!” program, a no-cost health and wellness program available for small manufacturers. The program intends to help employers reduce workers’ compensation and health care costs by improving the health of its workforce.

Eligible manufacturers include those with 250 or fewer employees who do not have an existing health and wellness program.

In addition to manufacturers, businesses who participate in the Ohio BWC’s Substance Use Recovery and Workplace Safety Program or who operate in certain high-risk industries including construction, health care, agriculture, automotive repair and service, firefighting, police, and public safety, public employers, restaurant and food service, transportation and trucking, trash collection, or wholesale and retail can participate. All participants will be able to access resources including:

• Health and wellness awareness, education, and training
• Health assessments and biometric screenings
• Online access to a health planning and tracking tool
• A mobile app with health tips and weekly plans
• Digital coaching

In addition, the Ohio BWC will provide on-site biometric screening for businesses with thirty or more employees interested in participating in the program.

To learn more about the Better You, Better Ohio! program, visit https://info.bwc.ohio.gov/wps/portal/gov/bwc/for-employers/workers-compensation-coverage/rates-and-bonuses/Health-and-wellness or register for a webinar introducing the program on August 12 at 10 a.m. or August 24 at 1:30 p.m.

The State of Ohio’s Bureau of Workers’ Compensation (BWC) has recently started issuing 1099-G payments to businesses relating to the three rounds of “dividend checks” made in 2020. This is a deviation from past payments that the BWC has made where no 1099’s were issued. The BWC indicated it was compelled to issue Form 1099-G for the 2020 payments pursuant to the IRS.

The state of Ohio is now asserting that these payments are subject to Ohio CAT barring any express statutory exclusion. While the BWC calls these payments “dividends” or “rebates” the state of Ohio is taking the position that the nature of the transaction is more akin to a taxable grant or other taxable gross receipts, which is how the payments are being reported on Form 1099-G (Box 6).

In a webinar issued by the Ohio Department of Taxation (ODT) the state has indicated these BWC payments also will be subject to commercial activity tax (CAT) liability because they are considered taxable gross receipts since no statutory exclusion applies in R.C. 5751.01(F)(2) to the amounts received.

The amount reported on the 1099-G will be for the aggregate amount of all three BWC payments received in the calendar year 2020. According to BWC, the forms will be mailed to employers in March 2021 at the latest and BWC will make every effort to issue them as soon as it is possible to do so – they are still in the process of collecting W-9s from employers.

Form 1099-G’s are expected to be issued throughout January 2021. BWC makes no representation to the IRS or individual employers as to whether or not the dividend payments are taxable. Each employers’ facts and circumstances are different.

If you have received a 1099-G related to BWC payments, please discuss this issue with your HBK representative.

On May 28, the Ohio Bureau of Workers’ Compensation (BWC) announced it would defer the due date for June, July and August premium installments until September 1. According to Governor Mike DeWine, the initiative, which is part of the state’s Responsible RestartOhio Plan, is designed to allow businesses to continue focusing on the safety and well-being of employees and customers. The deferral follows other initiatives by the Agency to support Ohio employers. In March, the Ohio BWC announced a deferral of March, April and May premium installments to June 1, and in April, the Agency provided $1.6 billion in dividend payments to the state’s employers. In addition, the Agency is maintaining a list of Frequently Asked Questions relating to COVID-19 on its website at https://www.bwc.ohio.gov/downloads/blankpdf/COVID-19-BWCFAQs.pdf. To read the press release on the latest deferral announcement, please visit the Ohio BWC website. For questions, please contact your HBK Advisor.

The Ohio Bureau of Workers’ Compensation (BWC) has announced its program to support the state’s businesses in light of COVID-19 disruptions. The agency has pushed back the due date for March, April, and May workers’ compensation insurance premium installment payments until June 1, 2020. The delay applies for both public and private employees. Policies will not lapse nor incur penalties for non-payment during this period. In addition, the BWC has offered guidance related to workers’ compensation claims. Highlights of their guidance include:

• • Communicable diseases (including COVID-19) are generally not accepted as workers’ compensation claims due to exposure occurring in many ways. The BWC might allow a claim if your job creates a special hazard or risk leading to work exposure to the virus.
  • The BWC staff is teleworking and continues to process new claims. The normal appeals process also remains in place.
  • Many claim payment plans have been extended to April 30, 2020.
  • If you need to contact your claims service specialist, use email for the fastest response. Email addresses can be found on the bottom of any Ohio BWC correspondence. If you do not have access to email, call 1-800-OHIOBWC. If you are represented by an attorney call your attorney before contacting your claims service specialist.
  • Face-to-face audits for self-insured and state fund employers have been suspended. Audits will continue by mail and virtually.

To review the BWC’s Coronavirus (COVID-19) Frequently Asked Questions, visit https://www.bwc.ohio.gov/downloads/blankpdf/COVID-19-BWCFAQs.pdf. For questions, contact BWC at BWCCOVID19@bwc.state.oh.us. If you have questions or would like to discuss COVID-19’s effect on you or your business, contact a member of the HBK CPAs & Consultants team.