Client True-Up Requirements for 23/24 Payroll Year
Client true-up reports are due between July 1 and Aug. 15. Starting with the true up for the 23/24 payroll year, client employers that have been in a Professional Employer Organization (PEO) reporting lease with your PEO from July 1, 2023, to June 30, 2024, do not have to complete a true up. This exception to true up does not apply to client employers that are in a client reporting lease, were not active on July 1, 2023, changed reporting lease types, or changed from one PEO to another. If you would like, you can still true up client policies that do qualify (in a PEO reporting lease with your PEO for the entire Payroll Year) at $0.00.
If you have any questions, please contact your assigned PEO consultant.
 PAW – Audit – Financials – What’s the difference?
PEO Audit Worksheet (PAW) – Every PEO must complete this spreadsheet at the end of each policy year to provide payroll information for all clients by the employee. The PEO Unit reviews all worksheets to confirm your client list and address preliminary payroll discrepancies.
Audit– While all PEOs must complete the PEO Audit Worksheet (PAW) each year, a select number are forwarded to our Auditing Department for a full audit. All PEOs will be audited within a three-to-four-year audit cycle. During the audit, the information from the PAW will be compared to other records, such as state unemployment tax records, federal tax returns, and payroll journals.
Financials– All PEOs registered in Ohio are required to provide a yearly audited financial statement that confirms the PEO is maintaining positive working capital. This statement must be prepared in accordance with generally accepted accounting principles (GAAP) and is due to Ohio BWC 180 days after the fiscal year-end.
 Changes to Client Owners/Officers reporting requirements
Clients with owners or officers who work in Ohio may need to consider the change in reporting requirements when entering a PEO reporting lease. These individuals may have had the option to elect coverage previously, but once they enter a lease, they are now considered employees of the PEO. This means coverage is required, not elective, and these individuals are no longer subject to the minimum and maximum reporting guidelines. All payroll associated with these individuals is reportable to Ohio BWC.
 PEO/AEO Employer of Record for claims
ORC 4125.03 requires all PEO’s to provide written notice to each shared employee it assigns to perform services to a client employer of the relationship between and the responsibilities of the PEO and the client employer.
ORC 4133 also requires AEO’s to Annually provide written notice to each worksite employee it assigns to perform services to a client employer of the relationship between and the responsibilities of the alternate employer organization and the client employer.
This requirement helps ensure that claims are filed correctly the first time and that they are not assigned incorrectly to a client/PEO policy.
*A copy of your standard annual notice to employees may become a required document this coming renewal season.
 Self-Insured PEO/AEO Quarterly Client List
Going forward, the client list will be requested on the 15th of the month after the quarter has ended (April 15, July 15, Oct. 15, & Jan. 15) and will be due at the end of that month (April 30, July 31, Oct. 31, & Jan. 31). The client list must be provided via a spreadsheet in electronic format and include the client name, state fund policy number (up to 8 digits & no dashes), client federal ID number, effective date of the PEO/AEO agreement, and type of agreement (i.e., full lease or client reporting for PEO and full lease for AEO). Do not leave blank rows between clients.
Additionally, in a separate document or sheet on the spreadsheet, please submit a complete list of claims associated with the self-insurance policy. This report should include claims for both the PEO/AEO and its client employers and claims for all other entities included as part of the self-insured policy. This report must include claim number, total medical and compensation paid to date, total incurred costs and the total outstanding case reserves for each claim. This updated claim information will be used as part of the determination of the appropriate security and assessments required as a condition of self-insurance.
 Self-Insured UA3 Form Submissions
The SI UA3 form must be submitted to the email address SIPEOAGREEMENTS@bwc.ohio.gov. These forms should not be sent to individuals in the PEO unit unless a specific form is requested, and individuals in the unit should not be copied on any emailed form submissions. Forms not sent to the email address listed above will not be accepted and may incur late fees if resubmissions through these means are not completed timely.
 Self-Insured PEO/AEOs – Full to PEO leases
If your lease with an employer was effective after July 1, 2023, an installment block would be placed for the remaining installments. This block will expire on July 1, 2024, and all unbilled installments will be billed that day. Our billing system assumes that all installments have been paid. This can result in the incorrect amount being listed as a credit or an amount owed on the true-up. Please let your clients know this and that they need to wait 1 to 2 business days for the true-up report to post on our website. Once it is posted, the correct amount will be displayed on the website.
 Professional Employer Organization Calendars
Click here to see the calendar of upcoming events and deadlines for Self-Insured Professional Organizations.
Click here to see a calendar of upcoming events and deadlines for State-Fund Professional Employer Organizations.
|
