Under Sections 127 and 128 of The Workers’ Compensation Act, 2013, the Saskatchewan Workers’ Compensation Board (WCB) has the right to inspect the books/records of any employer operating in Saskatchewan. Please be assured, this information remains confidential and will be used solely for the purpose of conducting the audit.
Employers may be selected for audits for one of the following reasons:
- They are part of an industry being reviewed.
- The firm is part of a random sample.
- The firm has a large refund owed on their account.
The Saskatchewan WCB audits employers to ensure that the assessable payroll and contractors have been reported correctly and that their industry code best reflects the firm’s activities.
Preparing for an Audit
An auditor will contact the employer by phone or in writing to schedule an audit.
Generally, an auditor examines the payroll records and other documents for the three years prior to the current year.
For each year, the WCB requires the following information to complete an audit:
- T4 and T4 summaries for each year, and/or payroll summary reports, or payroll year end reports indicating gross wages for work completed in Saskatchewan.
- Contractor ledgers, T5018s and/or a listing of contractors used in Saskatchewan, along with the amount paid and service provided or description of work.
- Working papers used to calculate payroll reported to the Saskatchewan WCB.
The Saskatchewan WCB defines contractors as individuals hired to perform work but not carried on your payroll. Examples of common contract services include plumbing, electrical, snow removal, janitorial, landscaping, casual labour not reported on a T4 and consulting. Section 2 (1) (ii) of The Workers’ Compensation Act, 2013 defines contractors as workers and reporting of their labour is mandatory, even if clearances were obtained.
In some cases, we ask to take a tour of your facilities. This helps us to assure your firm is assigned the correct industry code.
Changing the classification of a business activity may involve changing an employer’s rate code from one to another, due to incorrect classification of a business activity. In most cases, if the rate code changes, the reclassification will mean a change in the premium rate as well.
Common Reporting Errors
During the course of an audit, a Saskatchewan WCB auditor may discover errors in an employer’s reporting of the firm’s business activities and assessable earnings. The most common reporting errors resulting in an audit adjustment are:
- Calculating assessable earnings
- Calculating excess earnings
- Pro-rating excess earnings
- Reporting contractors
- Reporting of director’s wages vs. Optional Personal Coverage
- Classification of business activities
Related Fact Sheets and Publications
- Clearances for Contract Workers Fact Sheet
- Employer Appeals Fact Sheet
- Experience Rating Program Pamphlet
- Information for Employers Pamphlet
- Reporting Assessable Earning Fact Sheet
Related Policies and Guidelines – See our policy manual for more information
- Assessable Earnings (POL 24/2010)
- Maximum Assessable Wage Rate – 2016 (POL 07/2004)
- Employer Accounts – Clearances and Letters of Good Standing (POL 22/2014)
- Employer Classification (POL 14/2011)
- Classification, Change of (POL 09/2007)
- Director’s Policy (POL 14/2014)
- Excluded Occupations and Industries
- Coverage – Personal (POL03/2014)