Policy
The WSIB may make premium or premium rate adjustments to an employer’s account when:
Both premium rates and premiums owed or assessed may be adjusted.
Purpose
The purpose of this policy is to outline the circumstances under which the WSIB adjusts the premiums billed, payable or previously paid by employers. Most adjustments are limited to January 1 of the third prior year, with some exceptions.
Guidelines
Definitions
Premium adjustments refer to the following:
Current year: the current calendar year, or the year of the notification date.
Any prior year: means the WSIB may go back an unlimited number of years to make adjustments to an employer’s account.
WSIB errors: are clerical errors (i.e., typographical), data processing errors (i.e., computer generated), or omissions (i.e., failure to process or act upon a decision).
Application of adjustments
The WSIB may apply premium and premium rate adjustments to the current year, three prior years, or, in limited cases, any prior year, to ensure that an employer's premium rate is calculated appropriately and that correct premiums have been paid. Adjustments may be initiated at the employer's request, or by the WSIB.
Classification and eligibility for multiple premium rates
In the event of a correction or change to the following items, the WSIB may make debit or credit adjustments to the employer's account back to January 1st of the current year:
Correction or revision requiring adjustment
In the event of a correction or revision to the following items, the WSIB may make debit or credit premium adjustments to employer accounts back to January 1 of the third prior year:
Decision affecting claim count or claim costs
The WSIB may make premium credit adjustments only to an employer's account back to January 1 of the third prior year on a decision affecting claim count or claim costs, under the following circumstances:
Transfer of costs
Premium credit and debit adjustments may also be made to an employer's account back to January 1 of the third prior year when a transfer of costs is authorized according to 14-05-01, Transfer of Costs. In these cases, the employer who is approved for cost relief will receive a credit on their account, and the employer receiving the costs will have a debit adjustment applied to their account.
Lack of full disclosure
At its discretion, where the WSIB is satisfied that there has been a lack of full disclosure in an employer’s account on any premium related issue requiring a change or correction, the WSIB may make premium debit adjustments only back to January 1 of the third prior year when employers:
Exceptions
Court judgment
The WSIB may make premium debit or credit adjustments to an employer’s account in any prior year when a court judgment affects claim costs or claim frequency.
Non-compliance
Debit adjustments occur for any prior year if the WSIB has found employer non-compliance under the Workplace Safety and Insurance Act, 1997.
Non-compliance with accident reporting obligations, including claim suppression
The WSIB may make a debit adjustment to an employer’s account in any prior year if it determines the employer has not complied with accident reporting obligations. In addition, as of January 1, 2018, debit adjustments can be made if the WSIB has determined that the employer has contravened the prohibition against claim suppression.
Provisional premiums
The WSIB may make premium adjustments to an employer's account to correct provisional premiums in any prior year in which a provisional premium was issued.
Voluntary disclosure of non-compliant reporting
Registered employers who come forward voluntarily to disclose and correct previously under-reported insurable earnings are required to report and pay up to 12 months of premium adjustments retroactive from the date of disclosure.
The WSIB will:
Where an employer continues to under-report, the rules under the “Correction or revision requiring adjustment” section of this policy will be applied from the date of voluntary disclosure, enforcement proceedings may be taken, and interest may be applied. Subsequent instances of under-reporting by the employer will be subject to all relevant WSIB policies.
When the 12 month retroactive premium adjustment is not applicable
The 12 month retroactive premium adjustment for voluntary disclosure of under-reported insurable earnings is not applicable to employers who have been identified by the WSIB before their voluntary disclosure as the result of:
The 12 month retroactive premium adjustment is not applicable to employers who provide inaccurate or incomplete information at the time of their voluntary disclosure.
Employers requesting a premium adjustment
Employers requesting a premium adjustment must make their request to the WSIB. The WSIB may require that the request be submitted in writing. To make a request, employers should:
WSIB-initiated adjustments
The WSIB may require an employer to submit information in writing when the WSIB identifies the requirement for a premium adjustment.
Notification dates
For WSIB’s audit area, the notification date for a premium adjustment is the date of the audit visit, or the due date indicated on the Notice of Desk Audit.
For the WSIB’s other operating areas, the notification date for a premium adjustment is the receipt date of a request from an employer or an employer representative with valid authorization, or the date of a site visit documented in the employer's file.
For referrals between operating areas, the notification date remains the date set by the originating area.
The notification date for a given employer’s account sets the notification date for all other accounts within the employer’s organization. The timelines for adjustments are based on the notification date.
Application date
This policy applies to all adjustments with a notification date on or after January 1, 2020.
Policy review schedule
This policy will be reviewed within five years of the application date.
Document History
This document replaces 14-02-06 dated February 3, 2014, 13-02-07, dated July 15, 2011, and 13-02-05, dated January 3, 2007.
This document was previously published as:
14-02-06 dated January 2, 2013
14-02-06 dated November 3, 2008.
14-02-06 dated October 29, 2007
14-02-06 dated January 3, 2006
14-02-06 dated October 12, 2004
14-02-06 dated August 18, 2000
08-01-09 dated June 04, 1997.
References
Legislative Authority
Workplace Safety and Insurance Act, 1997, as amended
Sections 12, 12.2, 22.1, 30, 75(3), 77, 78, 81, 83, 84, 88(4), 96(2), 121, 155.1
Minute
Administrative
#3, June 1, 2018, Page 560