The Workplace Safety and Insurance Board ("WSIB") has announced a financial relief package worth up to $1.9 billion to assist businesses during COVID-19. The financial relief package allows businesses to defer premium reporting and payments until August 31, 2020. Businesses who report and pay monthly, quarterly or annually based on their insurable earnings may defer reporting and payments. No interest will accrue on outstanding premium payments for Schedule 1 businesses. Schedule 1 businesses are those businesses that are required by law to pay premiums to WSIB and are not individually responsible for actual claim costs (i.e., collective liability applies). No penalties will be charged against Schedule 1 businesses either.
Schedule 2 organizations may also defer their premium reporting and payments until August 31, 2020. Schedule 2 businesses are those businesses that are self insured for benefits under the Workplace Safety Insurance Act, 1997 and must pay for all workplace injury and illness claims. Schedule 2 businesses' account balances will not accrue debit interest.
The costs of COVID-19 related claims will not be allocated on an employer or class level. These costs will be applied on a schedule-wide basis, based on the WSIB's reasoning that the WSIB insurance system is based on the principle of collective liability. Premium rates will not change for the year 2020.
All businesses covered by WSIB's workplace insurance are automatically eligible for the deferral and no action is required to apply. That being said, it is not mandatory for a business to participate in the financial relief package.
More information is available here.
Originally published 20 April, 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
