The funds needed to cover the cost of WCB benefits and services are collected from registered employers in the form of premiums. Premiums are calculated by applying an assessment rate to a firm’s assessable payroll.
Our rate-setting model focuses on how industries share the costs of the system based on the concept of collective liability. In theory, all assessed employers are liable for all injuries. Given that different industries experience different levels of injury costs, it is necessary to set assessment rates at the industry level.
Industries experiencing lower than average costs pay lower than average premiums (based on lower than average assessment rates) and industries experiencing higher than average costs pay higher than average premiums (based on higher than average assessment rates). In theory, if an industry is responsible for 3% of all injury costs, it will be responsible for paying 3% of total premiums.
When you registered with us, your company was classified according to industry and then assigned an industry assessment rate.
The industry rate is set annually using our rate-setting model. Your individual firm rate is then modified to reflect your individual injury experience through a process called Experience Rating.
How are my assessment rates set? will tell you more about how rates are calculated.
Watch the How Rates are Set video.