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Workers’ compensation insurance pays for medical care, disability benefits, physiotherapy and lost wages when an employee is injured or ill at work. Employee compensation also covers funeral expenses if an employee dies as a result of work-related injury or illness.
Ohio law requires employers with one or more employees to have workers’ compensation insurance for their employees, or be self-insured if the company is large enough.
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Who Needs Workers Compensation Insurance in Ohio?
According to the Ohio Bureau of Workers Compensation, you must institute or update a worker compensation policy if:
- You are starting a new business
- You work as an independent contractor or subcontractor and have employees
- You acquire, merge, buy or sell a company
- You update and make changes to your existing employee compensation policy
How Ohio Workers Compensation Works
Ohio has a flawless system for employee compensation.
If an employee is injured or ill at work, they receive worker compensation for medical bills and lost wages. The employee does not have to prove that the employer caused an accident or illness in order to receive employee compensation benefits.
In return for employee replacement benefits, employees forego the right to sue the employer for work-related injury or illness.
Applying for Ohio Workers Compensation Insurance
In Ohio, workers compensation insurance is only available through the Bureau of Workers Compensation. There is a minimum non-refundable registration fee of $ 120.
Once the Ohio Bureau of Workers Compensation has processed the application, your employee compensation insurance will begin and a certificate will be issued.
Ohio law requires you to display a copy of your Ohio Bureau of Workers Compensation certificate in a prominent place in your business location. You must also publish the certificate on an intranet site where it is available to everyone in your company.
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When it comes to employee compensation, some large Ohio companies choose to self-insure. That means the company is directly responsible for paying medical bills and lost wages for employees who get sick or injured at work.
An injured employee would file a claim directly with the employer and the employer would pay for the benefits from working capital.
To be able to self-insure for workers in Ohio, the state requires:
- You have at least 500 employees working in Ohio
- They have been in operation for at least two years
- You can submit a five-year report
- You have an organizational plan for managing workers’ compensation claims
How to make a Workers Comp claim
If you are injured at work, you must report the incident to the Ohio Bureau of Workers Compensation. Either you, the employee, your employer, a medical service provider or a legal representative can make a claim.
Worker compensation claims can be submitted online, by phone, fax, mail, and in person. As soon as the claim is received, a claim number is assigned and a claims officer starts the claims process.
After submitting the claim, you will receive a notification letter within a few days and the Ohio Bureau of Workers Compensation will investigate the claim. The office has up to 28 days to decide whether to accept or reject the request for employee compensation. Disputed or rejected claims can be challenged.
Workers Comp for the self-employed
Employees with one or more employees must take out workers’ compensation insurance or be self-insured. It’s the law in Ohio.
However, the law also makes employee accident insurance optional for the following types of business:
- You are a sole trader
- You are in a partnership
- You have a limited liability company that acts as a sole proprietorship
- You have a limited liability company as a partnership
- You have family-run business leaders
- You are a natural person without employees
- You are an ordained or associate minister of a religious organization
Penalties For Not Having Insurance For Employees In Ohio
If employee compensation coverage has expired, the Ohio Bureau of Workers Compensation will impose penalties for late filing of the company’s payroll. Why is this report so important? A company’s annual payroll is used to calculate the company’s annual cost of employee compensation insurance.
The penalty for not filing a pay slip on time is 1% of the premium due with a minimum of $ 3 and a maximum of $ 15.
A second penalty is imposed for late payment of workers’ compensation.
Failure to pay the Employee Compensation Award in a timely manner will incur a flat fee of $ 30 and a penalty fee of 15% of the amount due.
Average Cost of Ohio Workers Compensation Insurance
Ohio workers’ compensation rates vary from company to company. Some companies, like construction, are more expensive to insure than others. An accounting firm would have a lower risk to insure. Other key factors that affect employee compensation awards are your company’s payroll and your company’s claims history.
The estimated employer cost of employee compensation in Ohio is 67 cents for every $ 100 covered in payroll, according to Insureon.
Statute of limitations
Effective October 2017, the statute of limitations for making an employee compensation claim in the state of Ohio has been reduced from two years from the date of the violation to one year. Ohio workers have one year to file compensation claims for workplace injuries and illnesses.
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