Ohio Code § 4123.322

§ 4123.322.

(A) The administrator of workers' compensation, with the advice and consent of the bureau

of workers' compensation board of directors, shall adopt rules establishing a prospective

payment system, which shall include all of the following: (1) A requirement that upon an initial application for coverage, a private employer shall

file with the application an estimate of the employer's payroll for the period the

administrator determines pursuant to rules the administrator adopts, and shall pay

the amount the administrator determines by rule in order to establish coverage for

the employer as described in division (B)(12) of section 4121.121 of the Revised Code ; (2) A requirement that upon an initial application for coverage, a public employer, except

for a state agency or state university or college, shall file with the application

an estimate of the employer's payroll for the period the administrator determines

pursuant to rules the administrator adopts, and shall pay the amount the administrator

determines by rule in order to establish coverage for the employer as described in division (B)(11) of section 4121.121 of the Revised Code ; (3) A requirement that an employer complete periodic payroll reports of actual expenditures

for previous coverage periods for reconciliation with estimated payroll reports; (4) The assessment of a penalty for late payroll reconciliation reports and for late

payment of any reconciliation premium; (5) The establishment of a transition period during which time the bureau shall determine

the adequacy of existing premium security deposits of employers, the establishment

of provisions for additional premium payments during that transition, the provision

of a credit of those deposits toward the first premium due from an employer under

the rules adopted under divisions (A)(1) to (4) of this section, and the establishment

of penalties for late payment or failure to comply with the rules. (B) For purposes of division (A)(3) of this section, an employer shall make timely payment

of any premium owed when actual payroll expenditures exceeded estimated payroll, and

the employer shall receive premium credit when the estimated payroll exceeded the

actual payroll. (C) For purposes of division (A)(4) of this section, if the employer's actual payroll

substantially exceeds the estimated payroll, the administrator may assess additional

penalties specified in rules the administrator adopts on the reconciliation premium. (D) As used in this section, “state university or college” has the same meaning as in section 4123.32 of the Revised Code .