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Frequently asked questions about reconciliation

 

Reconciliation guide pdf icon

The WSIB sets an annual maximum for insurable earnings.
For 2015, the annual maximum was $85,200. For 2016, the annual maximum is $88,000.

Key information to avoid costly penalties Important

Important
  • Use only the Reconciliation Form we send you
  • Contact the WSIB for a replacement form if needed.
  • Do not write over any dates or other preprinted data
  • Return the original in the envelope provided
  • Do not return your working copy or any photocopies or faxes of the form. Keep them for audit purposes
  • Return your completed form so that the WSIB receives it NO LATER than March 31.


Who needs to complete a Reconciliation Form?

  • All employers who were required to report and pay premiums monthly for an account that was active at the end of 2015
  • Employers whose reporting frequency changes to monthly
  • Employers who close an account regardless of reporting frequency
  • Employers who are asked by the WSIB to verify their earnings information

Why do I need to complete a Reconciliation Form?

Completing the Reconciliation Form will:

  • Help you to confirm that you have reported the right amount in premiums
    • If you have reported too much in earnings, we will adjust your account
    • If you have not reported enough, we will work with you to help correct your account
  • Help you to verify the accuracy of the earnings used to calculate the premiums
  • Give you an opportunity to provide any new information about your insurable earnings

What do I need to do to complete a Reconciliation Form?

You will need to:

  • Review the Reconciliation Form we send you. It will show the total premium amount you reported for the applicable reporting period up to the date of printing.
  • Compare the information on the Reconciliation Form with your records
    • Check for differences from the insurable earnings you used to calculate any premiums already reported, and
    • Calculate your actual premium
  • Compare your previously reported premium amount (if any) against your reconciled total premium amount
  • Record any reconciled difference as owing to you or to us

What records should I keep in case of a WSIB audit or review?

To verify reported annual amounts, the WSIB may review any documentation as necessary (sections 78 and 80 of the WSIA), and such documentation may include, but is not limited to:

  • Ownership documentation (e.g., Corporate Minute Book, Business or Partnership Registration)
  • Payroll records, such as T4's, T4A's, and payroll journal(s)
  • T5 Statement of Investment Income
  • T5018, Statement of Contract Payments
  • Clearances obtained for all retained contractors
  • Prepared financial statements, including Statement of Business Activities or Profit and Loss Statement
  • Contractors' invoices/contracts
  • Sales invoices/contracts
  • Purchase receipts
  • Cheque registers or cash disbursement journals

Note: Submitting incomplete or inaccurate information, or failure to keep and/or produce accurate records, can result in penalties and/or prosecution.

What material/business changes do I need to report to the WSIB?

Employers are required to notify the WSIB within 10 calendar days of a material/
business change in circumstances.

You will need to let us know immediately if any of the following "material/business changes" occur, as this may affect your WSIB legislative obligations:

  • Changes to the ownership of a company (e.g. mergers, amalgamations)
  • You dispose of all or part of your business
  • Legal and/or business/trade name changes
  • Addresses (work and branch locations)
  • Business Activity (classification) changes
  • Insurable Earnings (e.g. amended T4s or T4 Summaries, other earnings, worker/
    independent operator status changes)
  • Proof of earnings changes if you have optional insurance
  • Closure of business (or divisions or branches), dissolution, bankruptcy or receivership
  • The type of construction work you do has changed and your company is no longer eligible for an exemption under Bill 119 - Mandatory Coverage in Construction.
Important icon
For more information on change in declared status in construction, visit the Mandatory Coverage in construction page.

Change of Name or Address: Fill out the form on the flap attached to the return envelope provided with the Premium Remittance Form, the Reconciliation Form, or the Statement of Account, otherwise please contact a WSIB account representative.

What is the due date for the 2015 Reconciliation Form?

The 2015 Reconciliation Form is due March 31, 2016.

Are there late reporting and payment penalties?

Yes, depending on your circumstances, you may face any of the following:

  • Period Reconciliation Not Reported (PRNR): WSIB will calculate a premium based on our records and charge 1% of this amount, up to $1000 each month until the Reconciliation form is received
  • Late Payment Charge (LPC): LPC is issued if there is an amount owing on the account after the due date

Is debit and credit interest applied?

Yes. Generally, debit interest is applied to an account when, upon reconciliation, there is an outstanding balance due to the WSIB. Credit interest is applied to an account when, upon reconciliation, there is a credit due to the employer.

For more information on debit and credit interest and charges see Operational Policy Manual Document 14-02-07, Employer Non-Compliance Interest and Charges.

What should I do if I have lost/misplaced my Reconciliation Form?

Print a working copy. To obtain the correct figure for box 5 and box 14 you can:

  • Contact a WSIB account representative
  • Use our ePremium Service if you report online.

May I bring my completed Reconciliation Form to the financial institution I bank with?

No. The WSIB must receive and process the Reconciliation Form.

May I bring the completed Reconciliation Form to my local WSIB office?

Yes. You may also make your payment by debit or cheque at the local WSIB office.

Why does box 14 on the Reconciliation Form not match the total payments I made to the WSIB for the year?

Box 14 represents the sum of premiums reported – not paid – to the WSIB within the reconciliation period, as at the date the form was printed. Not all payments made to the WSIB throughout the year necessarily correspond to premiums reported. For details, contact a WSIB account representative.

What if I owe money as a result of the reconciliation process?

There are several ways to make your payment and file your Reconciliation Form:

  • Mail your Reconciliation Form with a cheque to the PO Box on the Form
  • Mail your Reconciliation Form to the PO Box on the form and pay separately through our online service (available through your financial institution). With ePayment you can pay using Interac Online, and MasterCard.

Once I complete the Reconciliation Form and Box 16 indicates I have a credit to my account, what happens?

After we verify that the information supplied is correct, the credit will be applied to your account balance. If your account balance is zero or already in a credit position, you may request a refund cheque by contacting a WSIB account representative. If not, the credit will be applied to reduce any outstanding balance.

 

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