Workers' compensation is a provincial insurance program, such as Ontario's WSIB, funded by employer premiums that covers workers injured or made ill on the job.
Workers' compensation provides wage replacement and medical coverage to employees injured or made ill through their work, in exchange for employees generally giving up the right to sue the employer. Each province runs its own board, Ontario's WSIB, WorkSafeBC, and others, funded entirely by employer premiums based on payroll and industry risk.
Coverage is mandatory for most employers in covered industries, and premiums are a real payroll cost that varies with the hazard level of the work. Registration, accurate payroll reporting, and timely premium payment are compliance obligations separate from CRA payroll remittances.
An Ontario construction company registers with the WSIB and pays premiums based on its payroll and a construction-industry rate. When a worker is injured on site, WSIB covers their lost wages and medical costs.
Our certified accounting firm handles this for businesses and individuals across Canada, at fixed fees with no surprises.
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