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New workers’ comp law stops double coverage for out-of-staters

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in Small Business Tax Deduction Strategies

Senate Bill 334, which became Ohio law in October, eliminated a significant financial burden for roughly 40,000 Ohio employers that were paying workers’ compensation premiums twice to cover out-of-state workers.

Ohio employers that must buy coverage in other states will now be required to pay premiums to the Ohio Bureau of Workers’ Compensation (BWC) only for labor and services performed in Ohio, thus avoiding double payments.

The law was introduced in response to laws in other states (such as Kentucky, New York and Florida) that require out-of-state employers to pay separate premiums to cover work completed there, regardless of whether the employers have coverage in their home states.

The law includes a reciprocal measure that requires out-of-state employers to buy Ohio workers’ compensation coverage to cover temporary employees working here, unless those employers are in a state that offers reciprocal coverage to Ohio employers.

The BWC says it’s working to make reciprocal arrangements with as many states as possible.

Employers should incorporate the changes beginning with their payroll filings for the Jan. 1 to June 30, 2009, payroll period.
 

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