Changes to your 2011 WCB classification
For more details
WCB Reclassification by industry
It's been over a decade since WCB examined how it classifies businesses into rate groups and changes have been long overdue. In response, WCB launched a thorough review in 2010 and found that one-third of businesses were paying more than their fair share while 5-10 per cent were underpaying according to their claim costs.
Based on these findings, WCB has introduced some changes to its 2011 rate structure:
- Businesses will now be classified according to their primary business activity, not just industry.
- The current 34 categories will be changed to 84 different industrial categories that will be then assigned to 19 different rate groups according to their cost/risk.
- The new system will include annual reviews and industrial categories may then be moved to a different rate group if warranted.
- Changes are revenue-neutral meaning that WCB will not see an increase in revenues due to these changes.
For many businesses, these changes will be positive ones. That said, CFIB understands that some businesses, particularly in agriculture and construction industries, will be facing increased premiums due to these changes. To help minimize the negative impacts for those seeing rate increases of more than 35 per cent, we have worked with WCB to ensure increases are phased in over two years. With this scenario, negative impacts faced by those seeing significant increases are minimized while still allowing those expecting rate reductions to reap the full benefit right away.
To see how your industry will be impacted, a breakdown by industry can be found under the "For more details" tab.
