Default in Assessment Payment
PRO 15/2023

Effective date: January 1, 2024

Application: Applies to all defaulting employers.

Policy subject: Employer payroll and premiums

Purpose:

To establish the 2024 penalty for default in assessment payments.

BACKGROUND

  1. The Workers’ Compensation General Regulations, 1985 directs the Workers’ Compensation Board (WCB) to apply a penalty when an employer fails to pay an assessment when it is due (Section 8).
  2. The penalty is a percentage of the amount in default, including any prior penalties, and will be equal to:
    1. The Bank of Canada bank rate on October 31 of the prior year, and
    2. 6.00 per cent.
  3. The Bank of Canada rate effective October 31, 2023 is 5.00 per cent.
  4. The Chief Executive Officer (CEO) has the authority to approve updates to the penalty percentage. As this is set in accordance with the specific directions provided in the Regulations, the CEO authorizes the Assistant Director of Legal and Policy to revise this annual penalty following the release of the October 31 Bank of Canada rate.

PROCEDURE

  1. When an employer fails to pay their assessment by the due date, a penalty will be applied to their account in the month following the payment due date.
    1. For example, the 2024 penalty will be applied to outstanding payments starting in January 2024. The penalties will appear on the employer’s February Statement of Account and each month’s statement thereafter, until paid.
  2. Effective January 1, 2024:
    1. The annual penalty will be 11.00 per cent.
    2. The monthly rate will be 0.92 per cent.

Policy references

Legislative Authority

The Workers’ Compensation Act, 2013
Section 152

The Workers’ Compensation General Regulations, 1985
Section 8

Document History

  1. February 13, 2024, housekeeping change to clarify the effective date that penalties will appear on Statement of Accounts. 
  2. PRO 15/2023, Default in Assessment Payment (effective January 1, 2024 to December 31, 2024)
  3. PRO 12/2019, Default in Assessment Payment (effective January 1, 2020 to December 31, 2023)
  4. PRO 12/209, June 1, 2023, Updated reference to Manager of Corporate Policy to Assistant Director of Legal and Policy.
  5. PRO 12/2019, November 17, 2022, Penalty updated by Manager of Corporate Policy for 2023.
  6. PRO 12/2019, December 8, 2021, Penalty updated by Manager of Corporate Policy for 2022.
  7. PRO 12/2019, November 9, 2020, Penalty updated by Manager of Corporate Policy for 2021.
  8. PRO 53/2018, Default in Assessment Payment – 2019 (effective January 1, 2019 to December 31, 2019).
  9. PRO 58/2017, Default in Assessment Payment – 2018 (effective January 1, 2018 to December 31, 2018).
  10. PRO 59/2016, Default in Assessment Payment – 2017 (effective January 1, 2017 to December 31, 2017).

Complements

POL 12/2020 Employer Coverage and Registration
POL 06/2011 Employer Accounts – Cancellation of Penalties and Interest
POL 22/2014 Employer Accounts – Clearances and Letters of Good Standing
POL 03/2018 Employer Audits
POL 09/2021 Employer Premium Payments
POL 09/2011 Failure to Register a Business
POL 03/2019 Under and Overestimating Payroll – Penalties and Credits
POL 07/2002 Coverage Within Saskatchewan – Out of Province Employers

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