If you own a business in Ontario or are planning to hire employees, you've likely come across the term WSIB. But what exactly is it, and how does it affect you as an employer?
WSIB stands for Workplace Safety and Insurance Board. It is a government agency in Ontario that manages the province’s worker compensation system for workplace injuries and illnesses.
The WSIB provides protection for both employers and employees. If a worker is injured or becomes ill due to their job, WSIB covers:
Medical treatment
Wage replacement while the employee is unable to work
Support for rehabilitation and returning to work
In return, registered businesses are protected from being sued by employees for workplace-related injuries, since WSIB operates as a no-fault insurance system.
In Ontario, most employers are required to register with WSIB within 10 days of hiring their first employee. This includes businesses in industries such as:
Construction
Manufacturing
Transportation
Cleaning services
Personal services, and more
Some businesses are exempt, including certain self-employed professionals and excluded industries. However, many choose to register voluntarily for added protection.
Failing to register with WSIB when required can lead to serious consequences, such as:
Fines and penalties
Retroactive premium payments
Personal liability in case of a workplace incident
WSIB functions like insurance. Each employer pays a premium based on:
The type of industry (some carry higher risk than others)
The company’s total payroll
WSIB assigns a classification and an annual rate. Businesses are required to report payroll and pay premiums accordingly.
While it may seem like an extra cost, WSIB offers important benefits:
Legal protection from lawsuits related to workplace injuries
Support in building safer work environments
Assistance with return-to-work programs
Compliance coverage during inspections or audits
You can register directly through the WSIB website, or through an accountant or advisor who can guide you through the process. At Toro Accounting, we include WSIB registration as part of our incorporation or business setup services.
Conclusion:
WSIB is more than just a legal requirement – it’s a key part of protecting your employees and your business. If you're growing and beginning to hire, be sure to understand your obligations and register on time.
Have questions about WSIB or wondering if your business should register? Reach out to us at info@toroaccounting.ca or visit www.toroaccounting.ca for more information.