Document name
Assessable Earnings
Document number
POL 24/2010

Effective date: September 1, 2010

Application: All applicable employers.

Policy subject: Employer payroll and premiums

Purpose:

To determine the types of earnings used to assess employer’s premiums.

DEFINITION

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Assessable earnings are workers’ gross earnings before deductions for income tax, Employment Insurance, Canada Pension Plan, and other similar deductions up to the maximum assessable amount for the calendar year being reported.

BACKGROUND

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  1. The Workers’ Compensation Board (WCB) has exclusive jurisdiction under Section 20(2)(h) of The Workers' Compensation Act, 2013 (the “Act”) to determine whether any industry or any part, branch or department of any industry is within the scope of the Act and the class to which it is assigned. Under Section 20(2)(i), WCB may also determine whether any worker is within the scope of the Act.
  2. Section 3(1) makes application of the Act mandatory to all “employers and workers engaged in, about or in connection with any industry in Saskatchewan”, except the farming or ranching industry in Saskatchewan and those industries, employers or workers that are specifically excluded pursuant to The Workers’ Compensation Miscellaneous Regulations.
  3. Subject to Section 122 of the Act and Regulation 4 of The Workers’ Compensation General Regulations, 1985, employers must report the earnings of all workers in their employ.
  4. Under Section 134(1) of the Act, “the board shall levy an assessment on the employers in each class of industries an amount based on any percentage of the employers’ payrolls or on any other rate, or an amount specified by the board, that, allowing for any surplus or deficit in the class, the board considers sufficient to pay: the compensation with respect to injuries to workers in the businesses within the class”.
  5. Section 137(2) of the Act states WCB will annually set a maximum assessable wage rate.

POLICY

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  1. All employers covered under the Act are required to report to WCB the assessable earnings of their full-time, part-time, casual and contract workers.
  2. Employers must report all assessable earnings for each worker up to the maximum assessable amount per calendar year being reported.
  3. Assessable earnings include all employment income reported on the Canada Revenue Agency’s T4 income tax slips and any other taxable allowances or benefits as listed below.
  4. Assessable earnings include, but are not limited to:
    1. Salaries and wages;
    2. Director’s earnings when included in the payroll of the business;
    3. Management fees (as reported on T4A);
    4. Labour portion of contract earnings or piecework;
    5. Overtime pay;
    6. Commissions;
    7. Bonuses;
    8. Vacation pay;
    9. Tips and Gratuities (as reported on T4);
    10. Honorariums and Financial awards;
    11. Gifts (as reported on T4);
    12. Advances of future earnings (as reported on T4);
    13. Pay in lieu of notice;
    14. Paid leave (e.g., sabbatical, maternity);
    15. Salary continuance;
    16. Maternity or paternity “top up” benefits;
    17. “Top up” of WCB benefits;
    18. Taxable benefits such as:
      1. Housing, board & room, lodging;
      1. Personal or living allowances;
      2. Car Allowance;
      3. Loans;
      4. Employer paid premiums on group life insurance, provincial medical services, disability plans;
      5. Stock Options; and
      6. Travel allowances;
    1. Profit Sharing Plan (distribution of profits reported on income tax form T4 or T4A);
    2. Share Purchase Plan; and
    3. Registered Retirement Saving Plans (if paid by the employer).

Assessable earnings also include any other remuneration or allowance WCB determines is assessable.

  1. Employers are not required to report earnings that WCB excludes from assessments such as (but not limited to):
    1. WCB benefits;
    2. Severance/Retiring Allowance;
    3. Dividends;
    4. Shareholder loans;
    5. Jurors’ fees;
    6. Pension and retirement benefits; and
    7. Reimbursement of travel expenses.

Policy references

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Section heading

Act Sec #

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2(1)(l), 2(1)(ii), 3(1), 4, 5, 20, 116, 122, 132, 134, and 137;

The Workers’ Compensation General Regulations 4;

The Workers’ Compensation Miscellaneous Regulations.

Section heading

Amended

Section detail

01 January 2014. References updated in accordance with The Workers’ Compensation Act, 2013

References updated 01 May 2015 in accordance with The Workers’ Compensation Miscellaneous Regulations

Section heading

Supersedes

Section detail

n/a

Section heading

Complements

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