Unit 9: Workers Compensation

Question 1

What is the purpose of Worker’s compensation?

Answer 1

to provide compensation for loss of wages and other benefits to employees in the event of a work-related accident or illness

Question 2

What are the types of benefits paid out of the Worker’s compensation fund?

Answer 2

1. compensation to workers for loss wages when they first get hurt plus some form of compensation for permanent disability and or long term wage loss resulting for the injury
2. where injury results in death, survivor benefits are paid to the worker’s spouse and dependant children
3. Medical expenses
4. vocational and medical rehabilitation services
5. Burial expenses
6. Clothing allowances

Question 3

What is the compensation for loss wages based on for WSIB?

Answer 3

based on worker’s earnings up to an annual maximum

Question 4

How are injured employees compensated?

Answer 4

through an accident fund that is financed by employers through an assessment process (looked after by WSIB).

Question 5

How are employer’s WSIB premiums calculated?

Answer 5

as a percentage of the employer’s payroll which varies by industry classification.

Question 6

Where are the wsib premiums paid

Answer 6

to WSIB - worker’s compensation board

Question 7

WSIB premiums are based on what?

Answer 7

the employer’s total annual assessable payroll and industry classification.

Question 8

How is an employer’s total annual assessable payroll determined? (for wsib)

Answer 8

1. the types of earnings that have been legislated as assessable
2. total dollar amount of the assessable earnings, up to an annual maximum amount per employee

Question 9

What are the earnings that are assessable for WSIB?

Answer 9

1. regular wages
2. overtime pay
3. shift differential
4. commissions
5. bonuses (work related)
6. gratuitites
7. vacation pay
8. employer paid sick pay, short term and long term disability
9. statutory holiday pay
10. pay in lieu of notice
11. retro payments
12. gifts/ awards if taxable
13. gifts/awards )in cash)
14. taxable allowances (car, clothing, housing etc)

Note: this is not a complete list, contact WSIB for more

Question 10

What are the industry classifications for WSIB

Answer 10

1. sales and service
2. manufacturing
3. construction
4. fishing
5. farming
6. mining
7. forest products

Question 11

What is each group classification for WSIB responsible for?

Answer 11

they are collectively responsible for the injuries occurring in that industry group. this means that the risk of injury within that industry is pooled and the costs are shared.

Higher risk industries pay higher premiums

Question 12

What is the premium rate range for WSIB

Answer 12

$0.30 per $100 of assessable payroll to as high as $31.00 per $100 of assessable payroll.

Question 13

What is an annual statement (WSIB) and what is it used for?

Answer 13

it used to determine what the employer will pay for workers compensation premiums
the amount is referred to as the employer’s assessment

Question 14

What is the employer’s assessment based (wsib)

Answer 14

based on actual payroll during the year paid on either a quarterly or monthly basis.

Question 15

Early in the new year, employers are required to file what for WSIB? And what does it show on it?

Answer 15

they file their annual statement of payroll which reports the employer’s

1. gross actual payroll for the pervious year.(box 14 of T4)
2. report actual assessable payroll for the previous year
3. Any amounts which exceed the maximum assessable amount are reported as well on the annual statement
4. must report an estimate of the total assessable payroll for the current year

Question 16

What is the actual assessable payroll for the previous year (WSIB).

Answer 16

the gross payroll less earnings paid in excess of the annual maximum assessable earnings

Question 17

What are any amounts that exceed the max assessable amount called (WSIB)

Answer 17

excess wages or excess payroll

Question 18

Each amount on the WSIB annual statement is round off to whatÉ

Answer 18

rounded off to the nearest $100

Question 19

What does WC uses the annual statement for

Answer 19

1. compare employer`s estimate payroll for the pervious year to the actual payroll to determine if an adjustment to their account is necessary
2. set the assessment rate for the current year based on the employer`s estimated assessable payroll

Question 20

What is the board name for Ontario for workers comp

Answer 20

workplace safety and insurance board of Ontario (WSIB)

Question 21

What is the name for the return (WSIB) called

Answer 21

reconciliation statement

Question 22

What is the due date for the annual return in Ontario (WSIB)

Answer 22

march 31 the following fiscal year

Question 23

How do you calculate the assessable earnings (WSIB)

Answer 23

1. calculate the total assessable earnings and the excess earnings
   (the amount by which the earnings exceed the annual maximum assessable earnings) for each employee

Question 24

How do you calculate the total assessable earnings for the year for each employee (WSIB)

Answer 24

two criteria must be considered

1. earnings that have been legislated as assessable
2. total dollar amount of assessable earnings up to a maximum amount of each employee

Question 25

what is maximum assessable earnings

Answer 25

(WSIB) total dollar amount of assessable earnings up to a maximum amount of each employee

Question 26

What are the late filing penalties for wsib

Answer 26

vary form province to province | penalties may also be levied for underestimating assessable earnings

Question 27

When estimating the assessable payroll for the current year, employers must ensure their assessment is as accurate as possible whyÉ

Answer 27

because underestimating can result in penalties

Question 28

To avoid paying penalties for underestimating assessable payroll employers are advised to do what

Answer 28

periodically review their estimate during the year and notify WC in writing of any revisions

Question 29

Once WSIB reviews the annual statement what happens

Answer 29

they issue a Notice of Assessment to the employer letting them know any difference between the actual and the estimated and then let them know they amount owing or refundable

Question 30

What are the WSIB remittance frequencies for employers who pay assessments on actual earnings

Answer 30

1. $300,000 + monthly due end of the following month 2. 20,000 t0 less than $300,000 - Quarterly end of the month following the quarter 3. less than 20,000 - annually - due April 30th