Workers’ Compensation is a mandatory insurance program that provides wage loss and medical benefits to employees who are injured on the job or become ill due to work-related causes. As an employer, you may be required to register, calculate premiums, and remit payments to your provincial or territorial Workers' Compensation Board (WCB).
Am I Required to Register with the Workers' Compensation Board?
In most provinces and territories, if you employ workers, you are required to register with your local WCB. However, specific requirements can vary depending on:
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The province or territory where your employees perform work
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The industry you operate in
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The number of employees you have
Some businesses or types of employment may be exempt or optional. If you're unsure, always check with your province's WCB (resources linked below).
How to Calculate & Remit Workers’ Compensation
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Register your business with your provincial/territorial WCB.
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Classify your business industry (rate class or NAICS code).
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Report employee earnings (insurable wages).
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Calculate premiums based on your industry rate and payroll.
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Remit payments as required (usually monthly, quarterly, or annually).
First, register your business with your provincial or territorial Workers' Compensation Board (WCB) by completing the necessary application forms and providing all required documentation. This step ensures that your business is recognized and compliant with local regulations, allowing you to access the benefits and protections offered by the WCB. Click here for scroll to the resources below.
Classify your business industry by determining the appropriate rate class or North American Industry Classification System (NAICS) code. This classification is crucial as it directly influences the premium rates you will be charged. It reflects the level of risk associated with your industry and helps the WCB assess your business accurately.
Report employee earnings by calculating the total insurable wages paid to your employees. This involves compiling detailed payroll records and ensuring that all relevant earnings are included. Accurate reporting is necessary for determining the correct premium amounts and maintaining compliance with WCB requirements
Calculate premiums based on your industry rate and payroll by applying the rate assigned to your business classification to the total insurable wages. This calculation will determine the amount you owe to the WCB. It is important to ensure precision in this process to avoid overpayment or underpayment, which could lead to penalties or financial discrepancies.
Remit payments as required, which typically involves submitting the calculated premiums to the WCB on a regular schedule. This could be monthly, quarterly, or annually, depending on the specific requirements of your province or territory. Timely remittance is crucial to maintaining good standing with the WCB and ensuring continuous coverage for your employees.
Alternatively, let us do it for you. PayTrak can calculate Workers' Compensation premiums and - depending on which PayTrak services you choose - remit these premiums directly to the WCB on your behalf.
For more information on standard payroll deductions check out our blog Understanding Payroll Deductions and Remittances in Canada.
Workers' Compensation Resources
Need help? Let PayTrak make your payroll & workers’ compensation reporting stress-free. Contact us today to get started.
