In response to a request from Gov. Mike DeWine, the Ohio Bureau of Workers’ Compensation (BWC) has issued $5 billion in dividends to eligible private and public employers. This was the third round of BWC dividends issued to lessen the burdens of COVID-19 on Ohio employers. We’ve answered the five most common questions on the issuance.
How much was the dividend?
Dividends for eligible private and public employers were equal to 372% of billed premiums for the period of June 1, 2019 to June 30, 2020.
How did the BWC issue the dividend?
The BWC applied the dividends against any unpaid amounts in the employer’s account. Any remaining dividend amounts were mailed to employers in December 2021.
Can the dividend checks still be cashed?
The dividend checks have a 90 day life before its stale-date. If an employer has not cashed their dividend check within that 90-day period, the BWC will reissue a check upon the employer’s request. If the employer does not cash their reissued check before its 90-day stale-date, the BWC will apply the dividend as a credit to the employer’s account.
How will this divided affect federal taxes?
The dividend will be treated as ordinary income for federal tax purposes. The BWC is issuing a Form 1099-G for the aggregate amount of all 2020 dividend amounts received by the employer.
What about state taxes?
All BWC dividends issued in 2020 and 2021 are excluded from the Ohio Commercial Activity Tax (CAT).