Surplus rebate for businesses

Our improved financial and investment strategy along with positive operational results has led to a surplus in our insurance fund. A surplus above and beyond our needed reserve allowed a rebate to businesses in 2022.

A rebate of surplus funds credit was applied to eligible business’ accounts in April 2022. Credits were displayed on their statement of account.

Premiums paid by Ontario businesses go toward helping people who have experienced a workplace injury or illness and the costs associated with their claims, while the surplus in our insurance fund is based on our improved financial and investment strategy along with positive operational results.

Our surplus rebate recognized the important role Ontario businesses play in funding our no-fault work-related injury and illness insurance system, while protecting coverage for people with work-related injury or illness.

Additionally, the average premium rate for businesses was decreased by 5.1 per cent in 2022 and will remain the same in 2023, the lowest it has been in over 20 years.

Schedule 1 businesses had to have met all the following eligibility requirements to receive a rebate of surplus funds in April 2022:

• have an active account as of January 31, 2022
• had premium obligations in either 2019 or 2020
• have not been convicted of a Workplace Safety and Insurance Act or an Occupational Health and Safety Act offence in a proceeding under Part III of the Provincial Offences Act, in 2021 or in 2022 up to and including the date the WSIB issues rebates 
• have not been convicted in more than one such proceeding between 2017 and 2022 up to and including the date the WSIB issues rebates
• must not be affiliated through common ownership with a business that is ineligible to receive a surplus rebate based on the convictions criteria outlined and has a traumatic workplace fatality attributed to them between 2017 and 2022 up to and including the date the WSIB issues surplus rebates
• must not be a Temporary Employment Agency determined by the WSIB to be the employer of a person who suffered a workplace fatality working for a business that is ineligible to receive a rebate based on the convictions and traumatic workplace fatality criteria outlined

Our surplus rebate was intended to help support safe Ontario businesses as they recover from the pandemic. We added eligibility criteria related to business affiliation and Temporary Employment Agencies to reflect the various ways businesses are structured and register with us to ensure fairness in how surplus rebates are applied.

There was no cap on a business’s surplus rebate. All businesses that met the eligibility requirements received a rebate that was approximately 34 per cent of their premiums paid in 2019 or 2020, whichever is higher.

Rebates were 34.02 per cent of your premiums paid in 2019 or 2020, whichever is higher, if your business meets all eligibility criteria.

Businesses who had premium payment obligations in 2019 or 2020 but whose businesses closed prior to January 1, 2022 are not eligible to receive a surplus rebate.

Our surplus is the result of return on investments in our insurance fund that Schedule 1 businesses prospectively contribute to. Schedule 2 businesses do not contribute to this fund and are individually responsible for the full cost of the accident claims filed by people who are injured or become ill in their workplace.

Our rebate of surplus funds above and beyond our needed reserve recognized the important role Schedule 1 businesses play in funding our collective liability work-related injury and illness insurance system, while protecting our ability to help people who have suffered an injury or illness with a safe, timely and lasting recovery and return to work today and into the future.

A rebate of surplus funds credit was applied to eligible business’ accounts in April 2022. Credit amounts were displayed on their statement of account.

Businesses can use surplus rebates to pay future premiums, invest in health and safety improvements and support, such as joining the Health and Safety Excellence program or fund other needed investments.   

Businesses up to date with their premium payment and reporting can also request a cheque online to receive payment for any credits on their account. If your business’s mailing address has recently changed, you can update your address online now to ensure we have your most up to date contact information.

Please contact the CRA to confirm how to report your surplus rebate credit amount for tax purposes. 

Surplus distribution did not impact benefits paid to people with work-related injury or illness.

We understand many businesses have been impacted by the COVID-19 pandemic and their insurable earnings in 2020 and 2021 may not reflect their pre-pandemic business activities. By using insurable earnings from 2019 and 2020, we ensured all businesses that met the eligibility requirements received a surplus rebate reflecting their contributions to the insurance fund.

We will continue to evaluate our financial and investment results to determine if we are in a position to rebate surplus funds above our needed reserve in future years.

If we are in a position to provide a rebate of surplus funds in the future we will determine eligibility based on our legislative and regulatory requirements and authority at that time.

Please contact our Stakeholder Compliance Services team at confirmationteam@wsib.on.ca if you have questions regarding convictions under the Workplace Safety and Insurance Act or Occupational Health and Safety Act.

If you think your business is eligible for a surplus rebate, but did not receive a credit on your account, please email us at employeraccounts@wsib.on.ca. If we determine your business does meet the eligibility criteria, a credit will be applied to your account.  You have until December 31, 2022 to let us know if you think your business should have received a rebate, but has not previously.

Errors must be identified within six months of a business receiving a rebate to be eligible for an adjustment. Calculation errors identified by the WSIB or businesses, such as clerical errors, data processing errors, or omissions, may result in a debit or credit to an individual business’s surplus rebate amount or correction of a business’s eligibility status. 

A business account that was not active as of January 31, 2022, but becomes active for all or part of 2022, may be eligible for a surplus rebate, assuming all other eligibility criteria are met. To be eligible, the business must become active on or before December 31, 2022. 

A business account that becomes active after December 31, 2022 with premium payment obligations retroactive to any point in 2022 or in earlier years is not eligible for a surplus rebate.

No. A business cannot appeal decisions made by the WSIB regarding surplus rebates, as outlined in the Workplace Safety and Insurance Act. This includes decisions related to a business’s eligibility for a rebate or the amount of surplus funds rebated to a business or group of businesses.