Ohio is a Monopolistic State for Workers' Compensation Insurance, which only allows workers comp coverage through the Bureau of Workers Compensation (BWC). Therefore, customers manage their workers’ comp policies independently of Justworks. Insurance through private insurance companies is not allowed.
Ohio requires all businesses operating in Ohio to have Workers’ Comp coverage for their Ohio employees. It is a Justworks requirement to have coverage in place to avoid compliance risk. Every day the customer does not have coverage in the state; they are violating their Justworks CSA and could lead the Ohio BWC to assess fines and penalties.
- Workers' compensation coverage should be obtained before or concurrent with any new Ohio employee's start date. As soon as one of our customers hires their first Ohio-based employee, they will need to create a workers' compensation account through the Ohio BWC.
2 Different Types of Ohio BWC Leases
Customers may only join our PEO reporting lease during one of the two PEO lease entry periods on 1/1 and 7/1 every year. Customers already on a client reporting lease must sign a second UA-3 form to join our lease.
1. PEO-reporting lease: Once a policy number is issued, customers must complete and sign a UA-3 form that notifies the Ohio BWC of the PEO-reporting lease relationship between the customer and Justworks. In addition, Justworks requires customers to complete an AC-2 form to grant Third-Party Administrator (TPA) access to manage their policies and required annual tasks.
- Example: With TPA granted, Justworks to remit the customers' annual fee and premiums and report monthly Ohio payroll directly to the state; under Justworks' policy number.
2. Client-reporting lease: Once a policy number is issued, customers will be on a client-reporting lease (unless they submit a UA-3 form). In addition, Justworks still requires customers to complete an AC-2 form to grant Third-Party Administrator (TPA) access to manage their policies and required annual tasks.
- Example: With TPA granted, Justworks remits the customers' annual fee and premiums and report monthly Ohio payroll directly to the state; under the customers' policy number.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.