Workplace Safety & Insurance Coverage - wsib

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Chapter 6 -Account Administration ■ total benefit costs (including those covered by advances) ■ physicians’ fees The administration fees are based on a projected administration rate that is set at the beginning of each year. Did You Know Since October 1990 physicians under the Ontario’s health insurance plan (OHIP) no longer bill the WSIB directly. They bill WSIB claim related costs to the Ministry of Health who, in turn, bills the WSIB. Late Filing of Accident Report (0183) This is issued daily, as they occur. This form notifies an employer when they are charged a late filing penalty. The charge is $250 for each occurrence. Physician Fee Adjustment Employers receive this notice annually, normally in March. It shows the difference between the estimated amount and the actual amount paid by the WSIB to the Ministry of Health for the previous year for physician fees. Fines for late reporting of accidents are recorded on the monthly statement as an AD invoice number. Average weekly Average reimbursement X – Deposit Costs pattern + 2 weeks on Hand Interest Charged The late payment interest charge notice is sent when interest is charged. The WSIB charges interest at the rate of two per cent each month end on the amount of overdue invoices not covered by a deposit. Late payment interest charges are recorded on the monthly statement as an AC invoice number. Interest Earned A notice of interest earned is sent when earned. The WSIB pays interest on deposits at each month end on the portion of the deposit greater than the accounts receivable balance. Invoice Cancellation Notice This notice is sent when the WSIB cancels an invoice previously charged to a Schedule 2 employer, such as when we cancel a late reporting charge. Interest earned is recorded on the monthly statement as a BB invoice number. Frequency of Billing Charges Working Capital All Schedule 2 employers must provide working capital so that the WSIB can pay for workplace insurance benefits on their behalf. The WSIB may request additional working capital at any time if it feels there are insufficient funds on hand. The amount is payable upon receipt of notice. Each year, the rate of interest paid is set at the prime rate of the WSIB’s bank, less two per cent, at the close of business each December 31. This rate is then used for the coming year. The WSIB evaluates the employer’s average weekly costs and reimbursement pattern; and adjusts the working capital amount as necessary using the firm’s cumulative 12 month experience. Average weekly costs are based on the benefit and associated costs (administration and physicians’ fees) paid out for the previous 12 months. The average reimbursement pattern is the average time it takes for an employer to reimburse the WSIB for benefits and associated costs. Charge/Cancellation Notice Late Filing of Accident Report Schedule 2 Invoice Covered by Advance Notice Invoice Cancellation Physician Fee Administration Charge Monthly Statement Late Payment Interest Earned Adjustment – Physician fee Reconciliation of administration charge Billing Cycle Daily Weekly Weekly Daily Monthly Monthly Monthly Monthly Monthy Yearly Yearly 32 Your account manager is your key contact for all premium-related questions.
Chapter 6 -Account Administration Financial security requirements On an annual basis, the WSIB will calculate the total estimated liability for each employer. Each April we will notify employers of their estimated liability. The estimate is based on the value of future benefit costs as of December of the year prior. The amount will include an administrative loading based on the rate in effect for that calendar year. For financial security purposes, the WSIB groups all Schedule 2 employers according to whether they are a private or government sector organization. Private Sector Employers The term, private sector employers, refers to organizations whose financial obligations are not directly guaranteed by government. This includes, for example, organizations incorporated under the Canada/Ontario Business Corporations Act. Currently, this may include business activities in industries such as airlines, bridge operations, housing authorities, railways, and shipping. The WSIB may require these employers to post security with the WSIB, in the full amount of the benefit liability. This security may comprise any combination of cash deposits, irrevocable standby letters of credit, or equivalent financial instruments acceptable to the WSIB. The WSIB reserves the right to establish the terms that must be satisfied by any financial guarantee provided. These may include, for example, requirements that an irrevocable standby letter of credit (LOC) be issued by a Canadian chartered bank in the organization’s legal name, that the WSIB be named as beneficiary, and so on. The WSIB may deliver the circumstances in which the LOC can be presented for full or partial payment, including notice that the bank does not plan to renew the LOC when it expires. The WSIB may accept liability estimates prepared and certified by external actuaries for security purposes on the condition that the WSIB’s Chief Actuary agrees to the terms. Adjustments to the security may be required periodically as the estimated liability amount changes. Government Sector Employers This sector covers the federal, provincial, or municipal governments themselves, as well as any agencies, boards or commissions of government. Examples include district school boards, colleges of applied arts & technology, library boards, and so on. Public sector employers should consult with their auditor to determine how to record their benefit liabilities on their financial statements. Contact your account manager for more information about your working capital or financial security requirements. Transfers between Schedule 2 and Schedule 1 About Schedule 1 Schedule 1 employers participate in a collective liability system for workplace safety and insurance costs. The business operations are assessed and classified resulting in one or more premium rates for the business. Premiums are calculated by multiplying the premium rate assigned per $100 of payroll. Annual premium rates are set each fall for the upcoming year. Most employers participate in an experience rating plan which considers accident cost and frequency. Smaller employers generally belong to the Merit Adjusted Premium plan which will have a direct impact on the firm’s annual premium rate. Larger employers are generally involved with the New Experimental Experience Rating plan, which places the firm in neutral, rebate or surcharge situations depending on its experience compared to other firms of its size with similar business operations. Transferring out of Schedule 2 A Schedule 2 employer may request a transfer to Schedule 1 to get the protection of the collective liability system. It is up to the WSIB to determine if the request for transfer is acceptable. The first step of this process is to discuss the idea with your account manager. Existing claim costs for transferees Employers that transfer from Schedule 2 to Schedule1 continue to be individually liable for all continuing costs for workplace injury or occupational disease claims that occurred while they were in Schedule 2. Transferring back to Schedule 2 A Schedule 2 employer who is Schedule 1 by application, may request to transfer back to Schedule 2. As part of this process, you will have to pay a special assessment that represents your share of the liability associated with the classification of business activity that your operations are grouped in. The liability that your organization incurred while in Schedule 1 will remain in the collective accident fund. Your application must include the payment of this assessment to be considered valid. If you hire contractors ask them to provide a clearance certificate to save you possible liability. 33
Page 1 and 2: Schedule 2 Employer Guide Workplace
Page 3: Contents Chapter 1: Ontario’s wor
Page 7 and 8: Chapter 1 -Ontario’s workplace sa
Page 9: Chapter 2 - Worker insurance benefi
Page 12 and 13: Frequently Asked Questions Injured
Page 15 and 16: Chapter 3 -Prevention and incentive
Page 17: Frequently Asked Questions Preventi
Page 21 and 22: Chapter 4 -In case of injury What t
Page 23 and 24: Frequently Asked Questions In case
Page 25: Chapter 5 - Getting your worker bet
Page 28 and 29: Chapter 5 -Getting your worker bett
Page 30 and 31: Frequently asked questions - Gettin
Page 33: Chapter 6 -Account administration F
Page 37 and 38: Chapter 6 -Account Administration S
Page 39: Chapter 7 - Appealing a WSIB decisi
Page 42 and 43: Frequently Asked Questions Appealin
Page 45 and 46: RESOURCES -Workplace Health and Saf
Page 48: Click wsib.on.ca Safety is everybod

Workplace Safety & Insurance Coverage - wsib

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