If you’re a small business owner in Ontario, understanding your responsibilities with the Workplace Safety and Insurance Board (WSIB) is crucial, especially if you employ workers or operate in a high-risk industry. Many new entrepreneurs overlook WSIB requirements, only to face unexpected penalties down the road. Let’s break it down.
What Is WSIB?
WSIB is Ontario’s workplace insurance system. It provides no-fault insurance for employees who are injured on the job, covering things like lost wages, medical care, and rehabilitation. In exchange, businesses are protected from being sued by workers over workplace injuries.
Who Needs to Register?
Generally, if you hire employees (even part-time or seasonal), you are required to register with WSIB within 10 days of hiring your first worker. Certain industries, such as construction, must register even if you’re a sole proprietor with no employees.
Here’s a quick breakdown:
- Mandatory Coverage: Includes most businesses in construction, manufacturing, retail, and hospitality.
- Optional/Exempt Businesses: Some sectors like financial services, dental offices, and private education may be exempt—but can opt in voluntarily.
When in doubt, it’s recommended to check the WSIB’s classification guidelines or speaking with an accountant familiar with your industry.
How Are WSIB Premiums Calculated?
Premiums are based on two main factors:
- Your industry classification (assigned by WSIB)
- Your total insurable earnings
Rates vary depending on the risk level of your industry. For example, construction businesses generally pay higher rates than office-based businesses. The good news? WSIB moved to a rate framework model that rewards businesses with strong safety records over time.
What If You Don’t Register?
Failing to register when required can result in:
- Retroactive premium payments
- Interest and penalties
- Legal action in severe cases
More importantly, your workers won’t be covered in the event of a workplace injury—which can lead to both financial and reputational damage.
How an Accountant Can Help
An accountant can help you:
- Determine whether you’re required to register
- Properly calculate and report insurable earnings
- Ensure your payroll records align with submissions
- Budget for premiums and avoid surprises
WSIB may feel like just another layer of red tape, but it’s an essential part of protecting your employees and your business. If you’re unsure about your obligations or want help managing compliance, reach out to them. WSIB staff are great to talk to and can help navigate your registration. You can reach them at 1-800-387-0750 or http://wsib.ca/.