Tick Tock – Time’s Running Out!
Starting to feel a little stressed? The deadline is looming!
Every year, across Canada, employers are required to report their payroll earnings to their respective provincial or territorial workers’ compensation board (WCB). The WCB then uses the reported amounts to establish the premium assessment for each employer.
Workers’ compensation boards are funded by employer contributions, or premiums, that are based on the level of risk associated with their particular industry. Typically, premiums are reflected as a specified dollar amount per $100 of payroll and are calculated based on maximum assessable earnings or the maximum annual earnings on which workers’ compensation premiums can be based. Sounds complicated? You bet!
Establishing premiums is a complex, multifactorial process and assessable earnings are only one of many variables that are used in the calculations. Determining what part of payroll earnings are assessable and exactly what needs to be reported can be equally complicated, especially with the impact that COVID has had on how workers have been paid and how businesses have had to operate.
Although reporting assessable earnings is mandatory across Canada, every regional WCB may have slightly different guidelines, protocols and procedures. Checking provincial WCB websites for their reporting process and additional details ensures that you are providing all the pertinent information to the best of your ability:
The deadline for payroll reporting to the WCB for most of Canada is February 28th. Failure to report your assessable earnings on time or incorrect reporting can result in significant financial penalties and trigger audits, even if your payroll is zero, so it’s best not to procrastinate!
For further information regarding assessable earnings or payroll reporting, we’d like to help you out. You can use our live chat feature during business hours, email us at [email protected] or at [email protected], contact us directly at 1-844-377-9545 or you can always connect with us on our Facebook page, through our Twitter account, on our LinkedIn profile.