While accident prevention and effective claim management do lower Workplace Safety and Insurance Board (WSIB) premium payments, business owners typically overlook an important step for WSIB reduction: their business classification. To lower premium contributions, companies must ensure their business is correctly classified.
Even if the WSIB deems a company's classification correct, there's still a possibility that it may not be. While the WSIB assigns classifications according to an employer's business activities, companies with more than one business activity may be entitled to more than one industry classification and therefore cheaper WSIB payments.
For instance, the primary rate classification for staff working in a company's production facility should differ from employees in retail areas where the risk of injury is lower. Unfortunately, most companies do not know the primary rate classification for a plant differs from the rate group for retail operations. In addition, to take advantage of this opportunity, companies must have a segregated payroll set up with proper documentation for each of the classification units. Proper segregation means that companies can objectively show employee labour time for each distinct activity. However, most businesses remain unaware of this advantage.
How PwC can help
PricewaterhouseCoopers can help you save money on your WSIB premiums. Our payroll tax professionals will conduct a classification review to help establish that your company's classification is the appropriate one with the lowest possible rate.
We will examine your payroll and related records for over- and under-premium payments and for staff who do not need coverage. To facilitate rebate improvements, we can assist your with a New Experimental Experience Rating (NEER) review, a rating given to companies based on their claim history that promotes a fair distribution of the WSIB burden.
Contact us today to discuss your WSIB requirements and classification issues.