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11/18/2024

Workers' Comp & Safety

News from Sedgwick

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The following information is provided by Sedgwick, the administrator of OWMA's Workers' Compensation Group Rating Program. In addition to workers compensation and workplace safety expertise, Sedgwick is a leader in unemployment compensation management.


Unemployment tax rate saving strategies 
It is critical for Ohio employers to keep focused on the key strategies of managing unemployment costs, especially since state trust funds that have been depleted by high claims volumes will need to be replenished. Historically, that has translated into tax rate increases for employers. 

Some of the most impactful cost reduction strategies for 2025 will soon be available and for a limited time only. Specifically, Ohio will be issuing employer tax rates for 2025 and there are a couple of options available for employers which can reduce their assigned rates.  Below we outline these strategies, which can often result in significant savings for merit rated (UI tax paying) employers.  

  1. Voluntary Contributions – Organizations may “buy down” their assigned tax rate by making an advance payment to move to a lower assigned rate. However, this option is not always advantageous and needs to be evaluated carefully. 
  1. Common Rating - organizations that have 51% or greater common ownership across multiple entities are eligible to participate in a strategy known as “common rating”. Common rating offers an opportunity to pool unemployment experiences for commonly owned entities which may save money on overall unemployment tax contributions. 

Recently, a Sedgwick employment tax specialist saved an Ohio client with ten operating companies and 1,500 employees over $160,000 in one calendar year. The complex analysis involved understanding and meeting the legislative requirements and for this client, finding a specific combination – out of thousands of possible combinations – that resulted in the maximum tax savings. 

In Ohio, the tax rate notices are expected to be issued in November.  The deadline for making voluntary contributions or filing common rating applications for the 2025 tax rates will be December 31, 2024, so time is of the essence.  

Sedgwick clients can contact Lindy Hogan [Lindy.Hogan@sedgwick.com] of the Sedgwick unemployment team if with questions about how to take advantage of special Ohio tax strategies and to learn about other best practices to mitigate the costs of pandemic claims or how to manage traditional unemployment.  

Watch a recorded training: 

PLAY RECORDING: Course 01 - Effectively Managing Unemployment Claims 

PLAY RECORDING: Course 02 - Hearing Witness Preparation 

PLAY RECORDING: Course 03 - Documentation, Documentation, Documentation 

OWMA Account Manager with Segwick:
Julia Bowling, Business Development Manager
Email: 
julia.bowling@sedgwick.com
Phone: 513-218-4062

 

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