Canadian provinces and territories have their own Workers’ Compensation Board (WCB) except for the Northwest Territories and Nunavut, which share aboard. As a result, the WCB legislation is governed by different criteria in each of the thirteen areas. The WCB assesses employers based on the amount of payroll they disclose to their respective boards. Per-employee earnings reported by firms are subject to yearly caps or maximum assessable levels of income.
It is the responsibility of each board to raise funds through employer payments (premiums). Standard premiums have an “assessment rate” of a certain cash amount per $100 of payroll. This refers to the maximum amount of yearly earnings that can be used to calculate workers’ compensation premiums. In the instance of a work-related accident or sickness, workers’ compensation provides a critical safety net. But navigating the laws and regulations of workers’ compensation in Canada may be a pain for companies.
Wages, medical treatment, and rehabilitation services for wounded employees and those with occupational diseases are all covered by the Workers’ Compensation Act. If you have a work-related injury or sickness, you can claim benefits in Canada.
What is the Workers Compensation Board of Canada?
The workers’ compensation board is referred to as WCB. Each province also has its own provincial workers’ compensation board, which oversees the program in addition to its own workers’ compensation legislation.
It is up to each workers’ compensation board (WCB) to decide which firms must carry insurance, how much each business must pay, who qualifies, and how workplace accidents should be reported. Province-to-province variations exist in these specifics. There are also workers’ compensation boards in each province that assess cases and issue payments. All these workers’ compensation boards work hard to avoid injuries and assist employees and businesses in resuming their duties.
Workers’ Compensation Insurance premiums
Employee Compensation insurance premiums vary widely depending on your company’s sector. It is thought that enterprises with comparable activities have similar risks, hence all WCBs categorize businesses according to industry. As part of your first registration with the WCB, you are required to provide a detailed description of your company’s activities. Worker’s compensation insurance premiums are determined by multiplying the insured employee’s annual salary by 100. Statistics on provincial assessment rates and rates by industry classification are available from the Association of Workers’ Compensation Boards of Canada.
Between provinces, the average premium rate is considerably different. A premium rate of $0.95 per $100 of payroll is the lowest for 2018 in Manitoba, for example. As of 2018, Alberta had the second-lowest average assessment rate at $0.102.On the other hand, the 2018 average assessment rate in Nova Scotia is $2.65, while the 2018 average assessment rate in Ontario is $2.35.
Performance-based pricing is used by all WCBs, which means that premiums can rise or fall depending on how well you perform. Companies that have fewer accidents and injuries pay less in insurance premiums. Companies with a bad accident and injury histories pay more for insurance. Workers’ compensation insurance rates can be reduced over time as a result of this experience plan. Participating in the Partners in Injury Reduction program in Alberta might earn you an additional discount of up to 20% on your insurance premiums.