Ohio Manufacturers to Expect Workers’ Compensation Rate Cut

On February 24, Governor Mike DeWine and the Ohio Bureau of Workers’ Compensation (BWC) announced an 8% reduction in workers’ compensation premiums for the next fiscal year. The decrease is consistent with the reduction in loss cuts and administrative costs the BWC has experienced. The 8% reduction is expected to be an average cost change, as premiums paid by employers are dependent on expected future claims, recent claims, and participation in various BWC programs.

The state of Ohio reported that, with this reduction, the average workers’ compensation rates are at their lowest levels in over sixty years. Further, this is only one of several actions the BWC has taken to support Ohio’s businesses in recent years. For instance, they have worked to lower rates as Ohio has moved from having the third highest rates in the country before 2008 to the fifth lowest rates through January 1, 2022. In addition, in 2020, the BWC issued three dividend payments, totaling approximately $8 billion, to support employers through the COVID-19 pandemic. The state also offers safety resources and training programs to help businesses keep employees safe, thereby reducing Workers’ Compensation claims.

To discuss your manufacturing business, please contact a member of HBK Manufacturing Solutions at 330-758-8613 or manufacturing@hbkcpa.com.

About the Author(s)

Amy Reynallt is a Senior Manager and Regional Director for HBK Manufacturing Solutions in the Youngstown Ohio office of HBK CPAs & Consultants. She is experienced in navigating the strategic and financial matters associated with manufacturing and works closely with manufacturers to help them plan, execute, and meet their short- and long-term financial goals. Amy can be reached at 330-758-8613 or by email at areynallt@hbkcpa.com.

Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.