Interest on Employer Account Refunds
Effective date: October 1, 2001
Application: All requests for refund and/or file review which may result in a refund or credit to Saskatchewan employers.
Policy subject: Employer payroll and premiums
To establish guidelines on providing interest on employer account refunds.
Situations that may result in a “credit balance” on an employer’s account include, but are not limited to:
- A request from an employer to review the account in regards to classification issues, wage reporting or personal coverage issues.
- The sale or closure of the business.
- The application of a refund.
- As per Section 152, of The Workers’ Compensation Act, 2013 (the “Act”), Regulation 8 of The Workers’ Compensation General Regulations, 1985 (the “General Regulations”), an employer operating in a mandatory industry and making payment of assessments to the Board after 30 calendar days from initial billing, is assessed a late payment penalty. In effect, the employer is charged interest on the amount owing.
- In order to be accountable and provide fair and timely service to the employers of Saskatchewan, interest should be provided to employers where applicable, as outlined in this policy.
- Situations resulting in an employer having to wait longer than 30 calendar days for a requested refund on their account with the WCB will result in interest being paid in addition to the applicable refund in accordance with the following:
- Interest is payable only on refunds initiated by a written request from an employer or their representative.
- Interest will be issued only when the delaying factor in providing the employer with a refund can be solely attributed to internal administrative delays.
- Interest will bear a rate equal to the Board’s financial institution’s prime rate at the date payment is issued.
- Interest will be payable from the 31st calendar day after the request for refund or review is received within the Board’s office (either Saskatoon or Regina), up to and including the date that the refund is made. Interest payments will be made only on refund amounts exceeding $5.00.
Act Sec #
Act Sec #
01 January 2014. References updated in accordance with The Workers’ Compensation Act, 2013.
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