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All employers with one or more employees must carry workers’ compensation coverage. It’s the law. However, Ohio law makes coverage elective for owners or ministers in one of the following categories:
Remember, if you choose not to cover yourself and you are injured at work, BWC will not provide coverage. And other insurance may not cover your work-related disability or medical bills. Contact your insurance carrier if you have questions. If you do elect to cover yourself, this coverage is in addition to or is supplemental to your current policy. Employers can apply for elective coverage within the initial application, Application for Ohio Workers’ Compensation Coverage (U-3), or at a later date with the Application for Elective Coverage (U-3S). You must complete an additional application for elective coverage to cover owners or ministers you wish to add at a later date. Elective coverage is effective the date we receive the U3-S. If you elect coverage, you do not report your payroll under the same manual category as your employees. Report elective coverage payroll only to manuals with the suffix SN (Elective NCCI), and report employees' payroll under manuals with the suffix RN (Regular NCCI). Listed below are the other rules for reporting payroll for elective coverage. We will cancel the elective coverage if you fail to report at least the minimum required amount of payroll for any reporting period that the coverage is in effect. Employers are responsible for the payment of premiums up to the date they ask to terminate their elective coverage. Sole proprietor or partnership coverage Independent contractors and subcontractors Limited liability companies (LLC) Note: There is an exception in which coverage is optional for the owner. In these cases, the LLC acting as a corporation meets the requirement to be considered an individual incorporated as a corporation (i.e., single/sole owner with no employees). Family farm corporate officers
Minimum/Maximum payroll reporting requirements Individual incorporated as a corporation An individual incorporated as a corporation is defined as a sole owner corporation with no employees and refers only to the owner of the corporation in terms of being excluded as an employee. This includes any corporation (S-Corp, LLC Corp, C-Corp) as long as there is a sole owner with no employees. An individual incorporated as a corporation, sole owner, zero employees does NOT have to establish or maintain an Ohio workers’ compensation policy unless the employer is required by another authority to show proof of workers’ compensation coverage (in which case having elective coverage would be sufficient) or if, at any time, coverage becomes required such as when the employer hires an employee or is no longer sole owner. Minimum/Maximum payroll reporting guidelines are the same as those for sole proprietors. If the employer fails to report at least the minimum reportable supplemental payroll for any reporting period, we will cancel the coverage. Ordained or associate ministers Second, if a church decides not to cover its ministers under the religious organization's policy, the ministers may elect to establish their own coverage as sole proprietors using the U-3. Payroll reporting guidelines are the same as for sole proprietors. Payroll reporting requirements Viewing and updating existing elective coverage Request to cancel elective coverage
Exemption for religious sects If you and your employee(s) qualify, you may choose this exemption by completing a three-part Application for Exemption from Ohio Workers’ Coverage and Waiver of Benefits (U-3E). After BWC grants a religious exemption, it no longer requires you to pay premiums or assessments on any employees covered by the exemption. However, you must still submit a payroll report and pay the administrative cost to BWC every six months verifying that your employees are exempt from coverage. You must report the payroll of any employee who does not qualify for the exemption, and pay the appropriate premium.
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