Document name
Cancellation of Penalties and Interest
Document number
POL 06/2011

Effective date: September 1, 2011

Application: All employer accounts.

Policy subject: Employer payroll and premiums

Purpose:

To establish guidelines for when the Workers’ Compensation Board (WCB) may cancel penalties and interest charges applied to employers’ accounts.

BACKGROUND

Policy section content
Section detail

The Workers’ Compensation Act, 2013 (the “Act”) and The Workers’ Compensation General Regulations, 1985 (the “General Regulations”) authorize the WCB to charge penalties and interest to employers who fail to register their business, provide payroll information, or remit premiums promptly.

POLICY

Policy section content
Section detail
  1. A penalty or an interest charge may only be cancelled in limited situations where:
    1. the penalty or interest is charged after:
      1. the assignment date for bankruptcy or receivership; or
      2. the notification  to terminate an employer’s account due to a business ceasing operations;
    2. the penalty or interest resulted from an administrative error by the WCB;
    3. the penalty or interest resulted from extraordinary circumstances including:
      1. death or severe illness of a proprietor, partner, family member, or accountant within the last remittance period;
      2. the loss, destruction, or theft of payroll records within the last three (3) months prior to the penalty being applied;
    4. the penalty or interest resulted from an issued cheque failing to arrive, which can be supported by a copy of the general ledger or cheque stubs;
    5. the penalty or interest is the only cost on a closed account with a balance less than five (5) dollars; or
    6. in exceptional cases for any other reason as determined by the WCB.
  2. The receipt of post-dated cheques to cover overdue amounts will not constitute sufficient cause to relieve an employer of penalties or interest. Penalties or interest will continue to accrue until the account is paid in full.

Policy references

Policy reference content

Section heading

Act Sec #

Section detail

122, 123;

The Workers’ Compensation General Regulations 3, 4, 5, 8, 9

Section heading

Amended

Section detail

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

Section heading

Supersedes

Section detail

n/a

Section heading

Complements

Call to action
Two people signing documents
Two people signing documents

Looking for the full policy manual?

Click here to download the WCB’s current Policy and Procedure Manual.

Call to action button
Download full manual