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Workers’ Comp Update for Nonprofits

October 15, 2015

BWC ends mandatory coverage for Volunteer Officers of Nonprofits.

New legislation recently went into effect that will have a positive on Ohio’s nonprofit organizations.

Effective September 29, 2015, the Ohio Bureau of Workers’ Compensation no longer requires nonprofits to have workers’ compensation coverage for their volunteer corporate officers. This means nonprofits will no longer need to pay premiums for these individuals.

Historically, under Ohio law, corporate officers – whether paid or unpaid – had been characterized as employees for workers’ compensation purposes and considered employees. Therefore, nonprofits were required to report minimum payroll to BWC and pay premium payments to cover their volunteer corporate officers.

Under the new legislation, true volunteer officers of nonprofit corporations are no longer treated as employees an no longer subject to mandatory workers’ compensation coverage.

This much-needed law change removes an unnecessary financial burden on Ohio’s nonprofits. This change frees up more money for nonprofit organizations to provide services that help local communities throughout Ohio.

On the other hand, if a nonprofit wants coverage for its volunteer officer, it need only report some amount of pay to the officer; however, this individual will no longer be considered a volunteer. This employee is then subject to minimum and maximum reporting requirements.





Source:
Ohio BWC ENews
Ohio Revised Code Sec. 4123.01(A)(2)(d)

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