Late filing penalty reversed for employer

An employer contacted the Commission about a $1,000 penalty he said the WSIB should not have charged. He mailed two annual reconciliation forms, one for each of his companies, in WSIB-issued envelopes on March 28, 2017. The WSIB received only one form before the March 31 deadline.

The WSIB told the employer he must pay the Period Reconciliation Not Reported (PRNR) penalty and could later appeal the decision. Account specialists have the authority to cancel a penalty if the employer has a good compliance record and a reasonable explanation for not complying for the filing period in question.

The Commission’s review revealed that the account specialist did not reverse the penalty because it was the third on the employer’s record. In fact, the previous two penalties were WSIB errors that had been reversed.

The Commission confirmed with the manager that the account specialist had not considered WSIB guidelines for cancelling non-compliance penalties. The employer paid some $800,000 a year in premiums and had an excellent compliance record for both companies.

The manager reversed the penalty and advised the president and controller of the companies.