Business audits

Businesses are selected for audit based on premium and claim reporting indicators to identify those at the highest risk of non-compliance.

Examples of risk indicators include:

• significant variance between T4 amounts reported to Canada Revenue Agency and the WSIB
• significant shifting between higher and lower premium rates and/or injury rate(s)
• high ratio of abandoned/withdrawn claims 
• convictions under the Employment Standards Act

An audit is an administrative action aimed at compliance where businesses are proactively identified based on potential risk indicators. The goal is to educate both the business and its employees, correct non-compliant behaviours and prevent further non-compliance. Auditors provide tailored education, assist with claim reporting, levy administrative penalties, make premium and classification adjustments, and provide recommendations.

An investigation is a regulatory action in response to referrals alleging non-compliance or fraud in the workplace safety and insurance system. The goal is to gather evidence, detect offences, and deter offenders. Investigators can lay charges under the authority of the Provincial Offences Act with the provincial courts ruling on the fines ordered. 

The Workplace Safety and Insurance Act outlines our authority to ensure businesses are meeting their obligations through the following sections:

• Section 21 – an employer shall notify the Board within three days after learning of an accident to a worker
• Section 22.1 – no employer shall take any action in respect to a worker with the intent to discourage or prevent the worker from filing a claim for benefits or influencing or inducing the worker to withdraw or abandon a claim for benefits
• Section 78 – an employer shall provide timely and accurate statement of wages
• Section 80 – payroll records to be maintained and accessible in Ontario
• Section 135(1)(2) – right of the Board or a person authorized by the Board to enter the establishment and to examine books or inspect premises

An auditor will:

• treat you with fairness and respect
• be professional
• educate you about your responsibilities to us and be a helpful resource to you throughout the audit process
• answer your questions and be a source of information
• protect the privacy and confidentiality of all information received

You’ll receive your audit notification letter within one to two business days after your first contact with the auditor. 

• you have the right to expect us to apply the Workplace Safety and Insurance Act fairly, reasonably and impartially 
• you have the right to be treated with courtesy, respect and consideration 
• you have the right to expect that your personal and financial information is protected against unauthorized use or disclosure 
• you have the right to get complete, accurate and clear information from us about your rights and obligations under the Workplace Safety and Insurance Act 
• you have the right to a clear explanation of our decision 
• you have the right to appeal the audit decision within six months of the date of the audit findings letter if we can’t resolve the matter to your satisfaction

Generally, an auditor will examine records for the current year plus three prior years. However, an audit may be extended to include additional years in exceptional circumstances.

How long an audit takes is determined by individual factors such as size and complexity of the business and its operations. On average, it takes six months to one year to complete the audit process, from issuing the audit notification letter to communicating the audit findings.

The following is a typical timeline for an audit:

• audit notification letter issued: you should receive your audit notification letter one to two business days after your first contact with the auditor
• initial audit site visit: the first audit site visit should happen within two months of receiving your audit notification letter
  • audit site visits are scheduled in collaboration with the business
• communication of audit findings: your auditor should share their audit findings six months to one year after you receive your audit notification letter

The auditor is available to answer your questions throughout the audit process. You can find the auditor’s contact information in your audit notification letter.

We'll schedule the audit with you if you’re selected for one. You’ll receive your audit notification letter within one to two business days after your first contact with the auditor. The auditor will outline the information required and share details about getting the information to us securely online.

You should designate one or more people who are available to respond to questions during the audit. Your audit site visit will happen within two months of receiving your audit notification letter.

Completing the reporting your insurable earnings and premiums self-evaluator and the employer injury or illness reporting self-evaluator can help you prepare for the audit. These are self-help tools designed to assist with identifying and addressing any issues in the insurable earnings, classification and premium reporting processes and any injury or illness reporting compliance risks. You can complete them confidentially, we’ll never ask for the results.

1. Financial information

• Articles of Incorporation (or Amendment or Amalgamation as applicable)
• Directors register, Officers register, and Shareholders register from the Corporate Minute Book
• T4 and T4A summaries, including individual T4s and T4As
• T5 Summaries and slips issued
• financial statements and a year-end trial balance by calendar year
• General Index of Financial Information (GIFI), T2 Schedule 9 and Schedule 50
• list of all affiliated and/or associated businesses and their WSIB account numbers
• WSIB reconciliation working papers including segregation of insurable earnings if you report under more than one North American Industry Classification System (NAICS) code (in Excel format if possible)
• organizational chart and location of Ontario offices and divisions
• sample of five invoices/contracts that describes your firm’s products or services
• list of your three primary competitors and their addresses
• banking information (name and address of financial institution and transit number)

2. Contractor information (if applicable)

• general ledger printout of contract labour and casual labour accounts (please note: a review of other general ledger details may be required)
• a list of all contractors/sub-contractors including their names, addresses, phone numbers, HST numbers and total gross earnings paid to each person per calendar year being audited. 

3. Trucking-related information (if applicable)

• Commercial Vehicle Operator’s Registration (CVOR)
• your insurance policy(ies) with list of covered vehicles and names of covered drivers
• lease-to-own agreements for your vehicles and contractors' vehicles
• vehicle registrations – both ownership and plate portions – for your vehicles and your contractors’ vehicles (unless the contractor is an employer)
• all completed transportation industry – determining worker/independent operator status questionnaires 
• signed and dated agreements/contracts between you and your contractors for the audited years
  • if you have different agreements/contracts for different categories of contractors, please provide at least one example of each

4. Injury and illness information

• first aid records
• workplace injury or illness investigation records
• completed WSIB Form 7s – Employer’s Report of Injury or Disease
• health and safety and first aid related policies and training materials
• human resource records, including:
  • payroll ledgers
  • timecards/time sheets
  • sick or wellness records (debits and credits)
  • short-term and long-term disability benefit records
  • shift and vacation schedules
  • Records of Employment (ROE)
  • personnel records
  • employment contracts

There are two administrative penalties that could be levied.

1. Claim suppression
   • Sections 22.1(1), (2) and (3) of the Workplace Safety and Insurance Act state that no employer shall take any action in respect of a worker with the intent of discouraging or preventing the worker from filing a claim for benefits or influencing or inducing the worker to withdraw or abandon a claim for benefits.
   • Regulation 175/98 states an employer who contravenes this section shall pay $5,000 for each of the first, second, and third contraventions, $7,500 for the fourth, fifth, and sixth contravention, and $10,000 for each subsequent contravention that the Board determines occurred.
2. Late greater than 30 days
   • Section 21(1) of the Workplace Safety and Insurance Act states an employer shall notify the Board within three days after learning of an accident to a worker employed by him, her, or it if the accident necessitates health care or results in the worker not being able to earn full wages.
   • Regulation 175/98 states if the employer’s failure to notify the Board as required exceeds 30 days in duration, they shall pay $1,000.

The auditor can make changes to your classification, reported insurable earnings and number of claims registered. These changes can impact your premiums and/or premium rates for one or more years. A balance will be due if you under report premiums. Conversely, you’ll receive a credit on your account if you over reported.