WorkSafeBC presentation may 3 2013


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May 2013 Presentation to FVCAA

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  • Continuing, maintaining and administering the accident fund. The Assessment department has stewardship of the accident fund ( $ 1.4 B) . The historic compromise, a no-fault insurance system, was established in BC Sessional Papers, Vol II, 1914. Workers’ compensation est. 1917. The team is committed to ensuring that employers understand the need to contribute towards a healthy accident fund.Investments $ 11.8BClaim costs $ 1.6 BReserves $ 1.8 B Premiums $ 1.1 BInsured employers 210KWorkers 2.1 M# claims accepted 104 K
  • This chart tells you everything that you need to know about coverage under the Act provided you understand a few key terms.Business Legal entities (form of business, type of business enterprise)Down the left side of this chart you’ll see that we reference the type of business enterprise.When it comes to workplace status and coverage under the Act, the way a business owner decides to structure their business has an impact on their rights and obligations under the Act.The first two forms of organizing a business, a proprietorship or a partnership, have no legal existence separate and apart from the person or people who own the business.The third form, an incorporated company, is a separate legal person.On the bottom of the chart are a couple of unique situations, volunteers and elected officials, who are generally not considered workers or employer, but may be in certain circumstances.Proprietor: The proprietor, the person who owns an unincorporated business is not a worker unless he or she purchases POP. ASK: do people understand POP?When a proprietor hires workers, that proprietor becomes an employer and is required to register. This includes hiring children or extended family members.One exception is the spouse. Re: family connection, difficult to tell contract, partnership, or employment. Voluntary coverage is available for a spouse. Partnership:A partner in an unincorporated business is not a worker unless he or she purchases POP. A spouse of a partner, who is paid by the partnership, is a worker of the partnership.Corporation:A principal, director, shareholder are considered workers of the company if they are active in the business.Volunteer: Coverage is extended to certain non-paid groups – volunteer firefighters for example and of relevance to construction – individuals who are completing an apprenticeship are generally covered through the Vocational or training program exception.To establish whether or not there is a worker-employer relationship, we use the legal terms “Contract of’ – worker; ‘contract for’ – independent/firm – firm realtionship
  • To summarize; it matters how a person structures their business.An independent operator must have an independent business existence - independent of the entity for whom the work is being done. The Registration section can make a status determination and register an employer
  • Section 38:(1) Every employer must(a) keep at all times at some place in the Province, the location ofwhich the employer has given notice to the Board, complete andaccurate particulars of the employer’s payrolls;Business structure: Labour contractors – can receive POP or be covered by primeCorporations – unless PSPDivisions – considered one and indivisible for the purpose of classification and ER, regardless of more than 1 trade name : operates as a profit centre with separate staff . The debt of the division is the debt of the firm.
  • Personal Optional Protection amount (covered in Item AP1-2-3).Earnings Include: Wages, salaries, commissions, holiday pay, bonuses, piecework, management fees, dividendsAlso assessed are non-registered contractors, based on the gross value of each contract. Excluded: Severance paySelf-funded leaves of absenceLiving out allowancesReimbursement Payments for vehicles for use of the worker’s vehicle (not allowances)GSTAdministration/Management PayrollMust be pro-rated among classification units on the basis of ‘net assessable direct payroll”. Exceptions: a formal cost accounting procedure that allocates overhead payrolls to cost or profit centres. Payments to management companies are assessable.
  • Assess on workers payroll plus cash equivalent allowances. The purpose of an audit is to verify compliance with legislation and policy requirements. Therefore, legislation and policies in effect during the time period of the audit will be used to determine compliance.If an audit results in a change in the firm’s assessment, the size and reason for the change is communicated to the employer or its representative and noted in the record of auditMaximum wage: adjusted annually determined by the Board and adjusted by a formula stipulated in the Act. 2013 –$ 75,500; 2012; $73,700
  • Home owners hiring workers for personal needs; regularly for less than 8 hours per week or 15 hours in child care or a single job for less than 24 working hrsBoth spouses in an unincorporated businessEmployers with no place of business in the province but who temporarily have business in BC, not employing a BC resident Professional sports athletesIncorporated personal financial holding company which only manages the personal finances of shareholders, only has shareholders as workers and only invests its own assets and those of the SH.
  • Assessment Manual Item: AP1-1-3(a)’s direction that “[s]ome regard must also be paid to the structure and customs of the particular industry involved” recognises that status determination is contextual; and requires that the department consider, among other matters, whether a master-servant relationship – which is the essence of the “contract of service” referred to in section 1 of the Act – is applicable in a particular industry or circumstance.Trucking – IJTMotion Picture and Television Productions – may apply for extended coverage to include all individuals providing services on a production, including principles of limited companies, independent operators, partners and proprietors and unregistered employers. This provides them with protection from suit.
  • The Board has an interjurisdictional agreement with the other provinces and territories to avoid double payment of assessments for the same work. Workers are covered for up to 6 months to work outside BC
  • Charging claim costs to employers - Section 47 (2) employer pays full cost of claim if the employer had failed to register or has failed to pay an assessment or part of an assessment. Section 51: if a contractor employs a subcontractor to perform work, both are liable for the assessment. The assessment may be levied on and collected from either of them. Section 88 gives the Board the authority to examine the books and accounts of every employer. Section 95(1): - enforces confidentialityOfficers of the Board and persons authorized to make examinations or inquiriesunder this Part must not divulge or allow to be divulged, except in theperformance of their duties or under the authority of the Board, informationobtained by them or which has come to their knowledge in making or inconnection with an examination or inquiry under this Part.(e) Disclosure to the public of information about a firmThe classification and basic assessment rate for the classification of an employer or an independent operator will be made available to anyone upon request. The Board will also generally disclose to any person the experience rated assessment rate of an individual firm, the total assessment charged to a firm, and the total claim costs charged to a firm for assessment purposes. However, the particular circumstances of the case may require all or part of this information to be withheld Under the provisions of FIPPA
  • Employers must have a valid email address as well as the following information handy before using online services: • Internet Registration Confirmation Number (IRCN, found on e-mail from WorkSafeBC that confirms the employer's successful online registration) or • If they don't have an IRCN, they'll need the payroll report ID from their Employer Payroll and Contract Labour Report (Form 1810) or their Employer's Remittance Form (Form 1820).Payment options: Credit cards • Maximum charge is $10,000 per transaction, once per card every 30 days • Available to all employers, regardless of annual premiums  Online pre-authorized chequing• Employers authenticates first, then set up a PAC agreement permitting premiums to be debited automatically from their account • Available to all employers with an IPAY Secure Connect ID set up • In addition to being able to pay any account balance, an employer may use PAC to pay instalment amounts  Web banking • Employers can set up WorkSafeBC as a "payee" online with their ebanking number, like they do for a utility, credit card, etc., through their own financial institution.  Telephone banking • Having been set up as a "payee", payments can be set up via their telephone banking service Clearances: Section 51 only Goldstar, good standing, no comment, not reported, recently registeredFast File & Pay – single class, pay by credit card onlyAccount Maintenance – address change, ownership details, account cancel, CRA BIN
  • WorkSafeBC presentation may 3 2013

    1. 1. Assessment Department
    2. 2. Assessment Department•The injured workers’ safety net•The employers’ protection
    3. 3. MANDATORY COVERAGEUNDER THE ACTVOLUNTARY COVERAGEUNDER THE ACTCompulsory Conditions Availability MechanismProprietorshipProprietor No – Yes Personal optional protectionProprietor’s spouse No – Yes Voluntary coverageProprietor’s child YesEmployment relationshipRemunerationNo –PartnershipPartner No – Yes Personal optional protectionPartner’s spouse YesEmployment relationshipRemunerationNo –Partner’s child YesEmployment relationshipRemunerationNo –CorporationorsimilarentityPrincipal Yes Active in the business No –Director YesActive in the operations ofthe corporationNo –Principal’s familymemberYesEarnings are reported forincome tax purposesNo –Officer Yes Active in the business No –Shareholder (active) Yes Active in the business No –Shareholder (inactive) No – No –Volunteer No Limited circumstances No Limited circumstancesElected official No – No –SUMMARY OF COVERAGE UNDER THE ACT
    4. 4. Assessment Department1. The way a person structures their businessmatters•Proprietor•Partner•Incorporated Company (Inc., Ltd., Co.)
    5. 5. Assessment DepartmentEvery employer must register, report and remiton all payroll earned in the Province of BC
    6. 6. Assessment Department• Wages and salaries• Principals’ earnings• Contractors’ earnings• Personal Optional Protection
    7. 7. Assessment Department• T4, T4A slips and summary• T5018 slips and summary• Payroll journal, synoptic ledger, cheque register• General ledger plus computer printouts ofwages; subcontractors; casual labour;• Corporate financial statements• WCB year end reports• Records for affiliated accounts
    8. 8. Assessment Department• Home owners hiring workers for personalneeds• Both spouses in an unincorporated business• Out of province employers who temporarilyhave business in BC, not employing a BCresident• Professional sports athletes• Incorporated personal financial holdingcompany
    9. 9. Assessment Department•Trucking – IJT/ Owner-Operators•Motion Picture and TelevisionProductions•Couriers•Realtors•Taxi Shift Lease Operators•Foster Parents•Physicians
    10. 10. Assessment Department•Interjurisdictional agreement•Workers covered for up to 6months
    11. 11. Assessment Department•Section 47 (2) - Charging claim costs toemployers•Section 51 - if a contractor employs asubcontractor to perform work, both are liable forthe assessment.•Section 84 – Assignment of Board authority; theboard of directors sets Board policies•Section 88 - gives the Board the authority toexamine the books and accounts of everyemployer.
    12. 12. Assessment DepartmentAccess secure applications 24/7•Secure Connect:•Online reporting and remitting•Clearance Letters•Payment Modification•Account Maintenance•Statement of Account•Fast File and Pay•Personal Optional Protection•Delegate
    13. 13. Assessment Department•