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BWC dividend checks are on the way

Written on Oct 29, 2021

OSCPA staff report

The Ohio Bureau of Workers' Compensation on Oct. 18 began sending dividend checks to 3,000 newly eligible employers to ease the impact of COVID-19 on Ohio’s business community and economy.

BWC will first apply the dividend to an employer’s unpaid premium balance, then send a check for the rest. Employers that receive this dividend may receive an IRS 1099 tax form in January.

The BWC Board of Directors this fall approved the expansion of the agency’s December dividend to about 3,000 additional employers who did not originally meet eligibility requirements.

Earlier this year, OSCPA spearheaded an effort to ensure Ohio businesses will not have to add Bureau of Workers’ Compensation dividends received in 2020 and 2021 as gross receipts for purposes of calculating Commercial Activity Tax liability. This issue arose late in 2020 when the BWC said they were required by the IRS to issue 1099-G forms to recipients of the nearly $8 billion in 2020 refund/dividend checks. Without this specific legislative exclusion, ODT’s interpretation would have required businesses to include these dollars as taxable gross receipts for CAT purposes.