November 2, 2021
WSIB rates to decrease in 2022
Having held 2021 rates steady at 2020 levels during the COVID-19 pandemic, the Workplace Safety and Insurance Board (WSIB) is resuming the transition approach to its rate-setting model in 2022.
The average premium rate for businesses will be reduced by 5.1 per cent for 2022. This represents a premium decrease from a Schedule 1 average rate of $1.37 on every $100 of insurable payroll in 2020 and 2021, to an average of $1.30 in 2022.
As well, the Ontario government has announced plans to introduce legislation that would allow for a large portion of WSIB’s $6.1 billion in reserves to be distributed to safe employers. Ontario is also proposing to enable the WSIB to work with the Canada Revenue Agency (CRA) to streamline remittances for businesses. This change would reduce administrative costs and burdens by giving businesses a one-stop-shop for submitting payroll deductions.
The COVID-19 pandemic has caused a spike in the province’s average industrial wage. As a result, the ceiling for worker benefits will be increasing by 9.45 per cent. To prevent some businesses from having to pay thousands of dollars a year in additional premiums, Ontario is capping the growth of premiums to an increase of 3.2 per cent.
Businesses eligible for a reduction will continue to see decreases to their premium rate and businesses with projected increases due to their individual class risk and experience will now move up to a maximum of one risk band, which is about five per cent, toward their projected rate.