A Guide for Canadian Payroll Administrators
🧾 What is WCB/WSIB and How Does Workers' Compensation Work?
WSIB (Workplace Safety and Insurance Board) is Ontario’s workplace insurance provider. Each province in Canada has its own workers’ compensation authority — such as WorkSafeBC in British Columbia or WCB Alberta.
As an employer, you're required to:
Register with your provincial board.
Pay premiums based on your industry classification and employee earnings.
These premiums help fund compensation for employees in case of a work-related injury or illness.
📊 How Workers’ Compensation Premiums Are Calculated
Your workers' compensation premiums are based on:
| Component | What it Means |
|---|---|
| Maximum Assessable Earnings (WCMAE) | The maximum amount of earnings per employee you can be charged premiums on. This changes every year and is automatically updated in your system. |
| Classification Code | Each industry/job type is assigned a code tied to a risk category. |
| Premium Rate (%) | The percentage you pay based on earnings. This rate changes annually and needs to be entered manually. |
| Experience Rating (if applicable) | In some provinces, your past claims history can affect your rate. |
🛠️ What’s Automated vs. What You Need to Do
We automatically update the maximum assessable earnings (WCMAE) for each province every year.
However, you are responsible for updating the premium rate applied to workers' compensation calculations.
| Item | Maintained by Us ✅ | Action Required by You 🔧 |
|---|---|---|
| WCMAE (Maximum Assessable Earnings) | ✅ Yes | ❌ No action needed |
| Premium Rate (%) | ❌ No | ✅ Must be updated manually |
📋 Checklist: What to Do
Use this checklist when you first set up your payroll system and again at the start of each new tax year.
🆕 Initial Setup
⬜ Confirm which provincial Workers’ Compensation Board your business is registered with
⬜ Gather your classification codes and current premium rates from your WCB
⬜ In your system, type Workers Compensation Policy in the global search bar
⬜ Open each Workers Compensation Policy record (you may have one per province or classification)
⬜ Go to the Rates tab
⬜ Enter the correct Effective Date (e.g., Jan 1 of this year)
⬜ Enter the Premium Rate (%)
⬜ Save the record
🔁 How To Update for Every New Tax Year
⬜ Visit your WCB’s website to get the latest premium rate
⬜ Confirm that the WCMAE is already updated (we do this for you!)
⬜ Use the global search to open each Workers Compensation Policy record
⬜ On the Rates tab, add a new rate entry:
⬜ Use an Effective Date of Jan 1 of the new year
⬜ Enter the updated Premium Rate (%)
⬜ Save your changes
🌐 Where to Find Your Premium Rate
Each province has a different WCB. Use the links below to find the latest rate and classification information:
British Columbia: WorkSafeBC
Manitoba: Workers Compensation Board of Manitoba
New Brunswick: WorkSafeNB
Newfoundland and Labrador: WorkplaceNL
Nova Scotia: WCB Nova Scotia
Ontario: WSIB
Prince Edward Island: WCB PEI
Québec: CNESST
Saskatchewan: WCB Saskatchewan
Yukon: Yukon WCB
Northwest Territories / Nunavut: WSCC
💡 Tips for Success
🗓 Set a recurring reminder every January to update your workers' compensation rates.
🏢 If you operate in multiple provinces, repeat the update for each policy.
📎 If you're unsure of your premium rate, reach out to your provincial board or check your last statement.
⚠️ If you don't update the rate, your payroll will continue using last year’s percentage — which may lead to incorrect deductions.