Employer penalty process

An employer representative contacted the Commission about the fairness of WSIB’s process for the payment of a penalty based on pre-determined premium rates. The WSIB’s position was that the employer owed $19,000 in penalties and accrued interest. The employer thought it unfair of the WSIB to calculate interest and penalties while it was negotiating with the employer, especially since the final agreed-upon payroll amount was only $152.

The Commission met with the manager and assistant director involved to determine whether the employer received enough notice that the penalties and interest would accrue during negotiations. The assistant director asked the manager and account specialist to review the employer’s accounts. As a result of the review, and in light of the small payroll amount, the WSIB decided to waive the $19,000 penalty.

The employer was pleased that the company would not have to appeal.