Businesses in Ontario continue to be negatively affected by the COVID-19 pandemic. To assist Ontario businesses, the Workplace Safety and Insurance Board (WSIB) announced in April 2020 the opportunity for businesses to defer their premiums due between March and August 2020.
The WSIB has since announced that to further support Ontario businesses during this financial crisis, repayment of these deferred amounts is not required to begin until January 2021 (although businesses can choose to make deferred premium payments at any point).
Businesses that elect to participate in this financial relief package will have until June 30, 2021 to repay any deferred premium amounts. These deferred amounts will be interest-free and any repayments can be made either in one or multiple installments between January and June 30, 2021.
For example, when a business makes a regular premium payment at the end of Jan. 31, 2021 for the Dec. 1-31 reporting period, they may choose to add the previously deferred premium for March 31, 2020, or for the quarter of April to June 2020.
This relief applies to both Schedule 1 (mandatory premium classes such as construction) and Schedule 2 organizations (e.g., publicly funded organizations such as municipalities, hospitals and school boards). Note that the payment obligations (either weekly or monthly) for Schedule 2 businesses were deferred until Aug. 31, 2020.
The WSIB reaffirmed that no interest would be accrued on outstanding premium payments for Schedule 1 businesses and no penalties were charged during this six-month deferral period. Schedule 2 account balances also did not accrue interest debt as part of the financial relief package.
It is also important to note that as of Sept. 1, 2020, regular monthly and quarterly reporting and payment schedules resumed for all businesses. Payment obligations will be due on the normal payment cycle for all businesses.
Finally, the WSIB stated that costs associated with COVID-19 related claims will not be allocated at an individual employer or class level. Instead, they will be allocated on a Schedule-wide basis and there will be no change in the premium rates for 2020.
Canada Emergency Wage Subsidy
Businesses that qualify for the Canada Emergency Wage Subsidy (CEWS) program who are receiving a subsidy used to pay employees who are on leave and not working do not need to report the earnings received through the subsidy for those employees. Businesses will be able to retroactively adjust their insurable earnings reported from March 15, 2020 onwards.
Businesses should complete their CEWS exemption worksheet to confirm if the business has been approved for the subsidy and submit any required adjustments to their account if the exemption criteria have been met. If an adjustment results in the business's account balance moving into a credit position, the business may be able to request a refund.
Take action
Administrators seeking to be proactive; contact Mark Bloch at mhbloch@bakertilly.ca, Scott Dupuis sdupuis@bakertilly.ca or their Baker Tilly Windsor advisor as soon as possible to go over possible strategies.
Related content
