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Payroll 2 > Unit 9: Workers Compensation > Flashcards

Unit 9: Workers Compensation Flashcards

1
Q

What is the purpose of Worker’s compensation?

A

to provide compensation for loss of wages and other benefits to employees in the event of a work-related accident or illness

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2
Q

What are the types of benefits paid out of the Worker’s compensation fund?

A
  1. compensation to workers for loss wages when they first get hurt plus some form of compensation for permanent disability and or long term wage loss resulting for the injury
  2. where injury results in death, survivor benefits are paid to the worker’s spouse and dependant children
  3. Medical expenses
  4. vocational and medical rehabilitation services
  5. Burial expenses
  6. Clothing allowances
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3
Q

What is the compensation for loss wages based on for WSIB?

A

based on worker’s earnings up to an annual maximum

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4
Q

How are injured employees compensated?

A

through an accident fund that is financed by employers through an assessment process (looked after by WSIB).

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5
Q

How are employer’s WSIB premiums calculated?

A

as a percentage of the employer’s payroll which varies by industry classification.

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6
Q

Where are the wsib premiums paid

A

to WSIB - worker’s compensation board

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7
Q

WSIB premiums are based on what?

A

the employer’s total annual assessable payroll and industry classification.

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8
Q

How is an employer’s total annual assessable payroll determined? (for wsib)

A
  1. the types of earnings that have been legislated as assessable
  2. total dollar amount of the assessable earnings, up to an annual maximum amount per employee
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9
Q

What are the earnings that are assessable for WSIB?

A
  1. regular wages
  2. overtime pay
  3. shift differential
  4. commissions
  5. bonuses (work related)
  6. gratuitites
  7. vacation pay
  8. employer paid sick pay, short term and long term disability
  9. statutory holiday pay
  10. pay in lieu of notice
  11. retro payments
  12. gifts/ awards if taxable
  13. gifts/awards )in cash)
  14. taxable allowances (car, clothing, housing etc)

Note: this is not a complete list, contact WSIB for more

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10
Q

What are the industry classifications for WSIB

A
  1. sales and service
  2. manufacturing
  3. construction
  4. fishing
  5. farming
  6. mining
  7. forest products
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11
Q

What is each group classification for WSIB responsible for?

A

they are collectively responsible for the injuries occurring in that industry group. this means that the risk of injury within that industry is pooled and the costs are shared.

Higher risk industries pay higher premiums

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12
Q

What is the premium rate range for WSIB

A

$0.30 per $100 of assessable payroll to as high as $31.00 per $100 of assessable payroll.

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13
Q

What is an annual statement (WSIB) and what is it used for?

A

it used to determine what the employer will pay for workers compensation premiums
the amount is referred to as the employer’s assessment

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14
Q

What is the employer’s assessment based (wsib)

A

based on actual payroll during the year paid on either a quarterly or monthly basis.

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15
Q

Early in the new year, employers are required to file what for WSIB? And what does it show on it?

A

they file their annual statement of payroll which reports the employer’s

  1. gross actual payroll for the pervious year.(box 14 of T4)
  2. report actual assessable payroll for the previous year
  3. Any amounts which exceed the maximum assessable amount are reported as well on the annual statement
  4. must report an estimate of the total assessable payroll for the current year
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16
Q

What is the actual assessable payroll for the previous year (WSIB).

A

the gross payroll less earnings paid in excess of the annual maximum assessable earnings

17
Q

What are any amounts that exceed the max assessable amount called (WSIB)

A

excess wages or excess payroll

18
Q

Each amount on the WSIB annual statement is round off to whatÉ

A

rounded off to the nearest $100

19
Q

What does WC uses the annual statement for

A
  1. compare employer`s estimate payroll for the pervious year to the actual payroll to determine if an adjustment to their account is necessary
  2. set the assessment rate for the current year based on the employer`s estimated assessable payroll
20
Q

What is the board name for Ontario for workers comp

A

workplace safety and insurance board of Ontario (WSIB)

21
Q

What is the name for the return (WSIB) called

A

reconciliation statement

22
Q

What is the due date for the annual return in Ontario (WSIB)

A

march 31 the following fiscal year

23
Q

How do you calculate the assessable earnings (WSIB)

A
  1. calculate the total assessable earnings and the excess earnings
    (the amount by which the earnings exceed the annual maximum assessable earnings) for each employee
24
Q

How do you calculate the total assessable earnings for the year for each employee (WSIB)

A

two criteria must be considered

  1. earnings that have been legislated as assessable
  2. total dollar amount of assessable earnings up to a maximum amount of each employee
25
Q

what is maximum assessable earnings

A

(WSIB) total dollar amount of assessable earnings up to a maximum amount of each employee

26
Q

What are the late filing penalties for wsib

A

vary form province to province

penalties may also be levied for underestimating assessable earnings

27
Q

When estimating the assessable payroll for the current year, employers must ensure their assessment is as accurate as possible whyÉ

A

because underestimating can result in penalties

28
Q

To avoid paying penalties for underestimating assessable payroll employers are advised to do what

A

periodically review their estimate during the year and notify WC in writing of any revisions

29
Q

Once WSIB reviews the annual statement what happens

A

they issue a Notice of Assessment to the employer letting them know any difference between the actual and the estimated and then let them know they amount owing or refundable

30
Q

What are the WSIB remittance frequencies for employers who pay assessments on actual earnings

A
  1. $300,000 + monthly due end of the following month
  2. 20,000 t0 less than $300,000
    • Quarterly end of the month following the quarter
  3. less than 20,000
    - annually
    - due April 30th

Payroll 2 (18 decks)

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