Document name

Failure to Register a Business

Document number

PRO 09/2011

The Workers' Compensation Board (WCB) has approved policy POL 09/2011, Failure to Register a Business, to establish the guidelines for the payment of premiums and penalties when employers fail to register as required under The Workers’ Compensation Act, 2013 (the “Act”) and The Workers’ Compensation General Regulations, 1985 (the “General Regulations”).

1. When an employer fails to register within 30 calendar days of employing workers as required by the Act, Employer Services staff will establish an account and will assess the employer’s payroll for the current plus preceding three years that the business should have been registered.
2. If there is evidence that an employer deliberately avoided registration, the Manager of Employer Services will review the information and will assess premiums for all years the employer should have been registered. An employer may be considered to have intentionally avoided registration where they have not responded to a registration form sent out to them, an injury claim has been submitted, or by any other means determined by Employer Services.
3. Where intentional avoidance has been determined, the Manager of Employer Services will also refer the employer’s file to Internal Audit for further review. Internal Audit will determine if the employer has breached the Criminal Code.
4. Where a work related injury has occurred and it is determined that the employer intentionally avoided registration, all information regarding this decision will be referred to the Board Members to determine, at their discretion, whether the employer should be held liable for the total cost of all injuries that occurred prior to registration.
5. In addition to the required premiums, the employer will be responsible for submitting the penalties based on the premiums for each year the employer should have been registered. Point 4 of POL 09/2011, Failure to Register a Business, will apply.
6. If the employer does not provide the assessable payroll as requested, Employer Services will assess the employer on an estimated payroll amount and will adjust this amount when the employer provides the actual payroll information.