When we calculate the loss-of-earnings benefits a person receives in the year(s) following an injury or illness, we adjust earnings to incorporate changes in cost of living using Canada’s Consumer Price Index.
Our payment system did not always adjust earnings correctly, affecting about two per cent of claims between January 1998 and December 2017. This payment error affected some people with claims as well as some of the businesses we work with.
We’re sorry for this error and the inconvenience it has caused and have now set things right.
In 2023, we sent letters to people with claims or businesses who were affected by this calculation error.
- If you’ve had a claim with us in the past and received a letter from us about this, please note the online service to confirm or update your address and banking information is no longer available. If you have a question about your letter or any outstanding payments, please call 416-344-1000 (toll free 1-800-387-0750) Monday to Friday, between 7:30 a.m. and 6 p.m.
- If you currently receive ongoing benefits from us and your claim was affected, you should have already received a letter with details about adjustments to your benefit rates.
- If you’re a Schedule 1 or Schedule 2 business, you can read our business questions and answers for more details.
If you have a past claim and did not receive a letter from us, your claim or business was not impacted. We checked all the claims in the affected time period and only sent letters to businesses and people with claims impacted by the error.
FAQ for people with claims
I received a letter but never went online to claim my payment. What do I do now?
You can claim your payment anytime. Please call us at 416-344-1000 (toll free 1-800-387-0750) Monday to Friday, between 7:30 a.m. and 6 p.m. to have your payment processed as a cheque.
I received a letter intended for a person who is deceased saying they’re owed a payment as a result of this error. What do I do?
If you’re a surviving spouse or next of kin, call us at 416-344-1000 (toll free 1-800-387-0750) Monday to Friday, between 7:30 a.m. and 6 p.m. to start the process of receiving the payment.
If I currently receive benefits from the WSIB, how will they be affected?
As this error was fixed in an update made in 2018, only a small number of people currently receiving benefits from the WSIB were affected. If you currently receive loss-of-earnings benefits from the WSIB and your claim was affected by this calculation error, you should have already received a letter that outlines the change to your payment going forward.
If you were owed benefits because of this calculation error, we reimbursed the amount we owed you, with interest, and your ongoing benefit rate was increased to reflect the correct amount.
If you were overpaid as a result of this calculation error (which only happened in a small number of claims), you should have received a call from a case manager about your ongoing benefit rate being adjusted to reflect the correct amount.
I received a letter, but it says that I’m not owed a payment. Why, and what do I do next?
There’s nothing you need to do. In some cases, deductions, including existing overpayments, assignments or advances on an account or garnishments, were applied to people’s payments.
Your personalized letter would have let you know if a deduction was applied and listed your total credit before any deductions were made, the amount of the deductions applied, and the final total including all deductions.
Did people with claims owe any money back to the WSIB as a result of this calculation error?
No. People who received overpayments due to the calculation error were not required to reimburse the WSIB.
Is this payment considered part of my income?
Yes, your loss-of-earnings benefit recalculation payment is considered non-taxable income. If changes to your income could affect your financial assistance or benefits through other government programs, you can opt out of receiving your payments by taking no action on the letter you received.
Do I have to pay income tax on my payment?
No, WSIB benefits are not taxable. For your records, we will issue you a T5007 tax form for the year you receive your payment, not for the year of the benefit entitlement.
If you had more than one claim affected by the loss-of-earnings recalculation or currently receive ongoing benefits, you’ll receive a separate T5007 tax form for any claim affected by the recalculation. Please note, the T5007 does not include interest. You’re only obligated to report what is listed on your T5007.
Why was my payment more than what was listed on my letter?
Your final payment amount includes an interest payment. The amount of interest depends on the length of time between when your claim was filed, and when you received the payment. Proper steps have been taken to give everyone the correct payment they’re owed including interest. You will not be asked to reimburse the WSIB for any payments you received due to the calculation error.
How do you calculate interest on the payment amount?
We pay interest at a rate that is equal to the post-judgement interest rate under the Courts of Justice Act. The post-judgement interest rate, set quarterly under the act, is the official bank rate (rounded up to the next higher whole number if it is a fraction) plus one per cent.
I made a five per cent contribution to my loss-of-retirement income fund account. How does this affect my loss-of-retirement income account?
In addition to the five per cent that the WSIB contributes to your loss-of-retirement income fund account, we will apply five per cent of the corrected loss-of-earnings benefits to your loss-of-retirement income fund account for all payments after your initial 12-month qualifying period.
My loss-of-retirement income fund account has been paid out to me. How does this affect my reimbursement?
We’ll send you a separate post-settlement payment for five per cent of the corrected loss-of-earnings benefits and the five per cent that the WSIB contributes to your loss-of-retirement income account, for all payments after your initial 12-month qualifying period.
Am I entitled to any additional payments as a result of this calculation error?
No. This was a one-time payment. It did not affect any future payments. The calculation error has been resolved and there will be no additional payments.
I have moved since I last received WSIB benefits. How will I know if the WSIB has my correct address or if I am entitled to a payment?
We made an effort to locate everyone impacted by this error. If you have moved, are not receiving current benefits from the WSIB, and are concerned you have not received a letter from us regarding a previous claim, you can call 416-344-1000 (toll free 1-800-387-0750) Monday to Friday, between 7:30 a.m. and 6 p.m.
Why does my letter have a different phone number than your regular number?
We used a dedicated team and phone number for people who received letters about this recalculation. Now, if you have any questions about your letter or any outstanding payments, please call 416-344-1000 (toll free 1-800-387-0750) Monday to Friday, between 7:30 a.m. and 6 p.m.
Why is this not an appealable decision?
According to the Workplace Safety Insurance Act, people can appeal adjudicative decisions made by the WSIB. An adjudicative decision is when the WSIB makes a determination of law or fact on someone’s claim. These benefit payment adjustments involve a correction to the way WSIB systems calculated some loss-of-earnings benefits. That correction to our system may impact your benefit amount, however, it does not change the findings of fact and law made in your claim. For this reason, these benefit payment adjustments are not adjudicative decisions and are not appealable.
FAQ for businesses
Schedule 1
I heard about adjustments to loss-of-earnings calculation. I haven’t received a letter for my business. Will I be receiving anything?
We sent letters to every person and business impacted by the error. If your business didn’t receive a letter from us by October 2023, you’re likely not impacted.
How does this affect impacted Schedule 1 businesses who have overpaid claims from January 1998 and December 2017?
Schedule 1 businesses who have overpaid claims during this period may receive adjustments because of revisions to their experience rating statements.
There may also be an adjustment to their premium rates for 2020 to 2024 if this loss-of-earnings adjustment falls within the premium rate setting window.
How does this affect impacted Schedule 1 businesses who have underpaid claims from January 1998 and December 2017?
No adjustments for underpayments will result in additional charges for Schedule 1 businesses.
The associated additional costs for claims underpaid between January 1998 to December 2017 will be excluded from premium rate adjustments from 2020 to 2024.
I received a letter about the adjustments to loss-of-earnings benefits for historical claims, what do I need to do now?
You don’t need to take any action at this time. We’ll adjust impacted accounts accordingly and automatically apply any credits to your account.
Why did I receive a loss-of-earnings recalculation cheque for an employee that no longer works for me?
If you previously paid for the employee’s claim by advances, you’ll receive a cheque with the recalculated amount for reimbursement.
What interest rate will be applied to the retroactive experience rating adjustment?
We pay interest at a rate that is equal to the Bank of Canada rate, as adjusted quarterly.
Will this impact the class average rates going forward, and if so how?
No. Loss-of-earnings adjustment costs will be covered collectively for all Schedule 1 businesses. Recalculation efforts won’t impact class average rates going forward.
How will I know which claims are impacted?
If your account has claims impacted by the loss-of-earnings adjustment, it will be attached to the accident cost statement you received in 2023. This claim cost statement will only contain the amounts adjusted and will NOT be reflected in the monthly accident cost statements created at the beginning of each month.
Have you identified all impacted claims on my account? Has the error been corrected?
Yes, the error was resolved with an update made in 2018. As part of our review of historical claims, we’ve identified and adjusted all impacted claims on your account. Please email [email protected] and include your account number or call us at 1-800-663-6639 if you believe there is an error on your accident cost statement.
Will I be getting a historical experience rating adjustment?
If you were part of our NEER, CAD-7 or MAP programs, any loss-of-earnings benefits that your employees were overpaid in this time period may impact your historical experience rating. Your experience for these periods will be recalculated and any adjustments for overpayments will be applied to your account as a credit in 2024. No adjustments for underpayments will result in additional charges to your account.
I have concerns about how the over/under payment amounts will impact my historical experience rating adjustment amounts, who do I contact?
Please email [email protected] and include your account number or call us at 1-800-663-6639 for more information about how adjustments may impact your historical experience rating adjustment amounts.
How will I know if my premium rate has been adjusted?
If your account has been impacted by the loss-of-earnings adjustment, a premium rate summary statement will be available in your online services account and your rate will be updated in our online reporting service if it’s been impacted.
Where can I find the backup documentation that supports the adjustments?
The following statements will be made available to accounts impacted by the loss-of-earnings adjustment in summer 2024:
- Premium rate summary statement will be available through your online services account to reflect the impact to your premium rates from 2020, 2021, 2022, 2023 and 2024
- Experience rating statements will be mailed to you to reflect the impacts to your historic experience rating program (NEER, CAD7, MAPP)
How will I receive a credit on my account?
Credits related to historical experience rating programs will be issued automatically to accounts in good standing in 2024 and we’ll apply a premium rate recalculation adjustment credit to your account. You can log in to our online services to view your account balance.
If you’d like to receive a cheque for any credits applied to your account, please email [email protected] and include your account number.
What if my account is currently not in good standing, will I still receive a credit?
If you’re receiving a credit but your account is not in good standing, we’ll apply the credit to your account against any outstanding balance. You can log in to our online services to view your account balance.
How will multi-account organizations be adjusted?
We’ll adjust the impacted accounts, and the organizational account as required for historical experience rate adjustments.
Will inactive accounts be impacted? If so, how?
No, there is no impact for inactive accounts.
Is there any impact to surplus rebates?
No, there is no impact to surplus rebates.
Schedule 2
How does this affect impacted Schedule 2 businesses?
Any related overpayments and the corresponding administration charge has been applied separately as a credit on accounts. Any underpayments and the corresponding administration charge, excluding interest, was applied separately as a debit when people claimed their benefits. People entitled to compensation from the recalculation will always be able to claim their payment. If someone comes forward to claim their benefits it will continue to show as a debit.
How does this affect administration rates?
The administration charge for adjusted benefits will appear in a separate transaction on your monthly statement of account and will be charged at the current provisional rate. The 2023 latest forecast calculation and the 2024 provisional administration rate reflected any adjustments due to our loss-of-earnings recalculation.
Will there be interest applied on the overpayment or underpayment amount owed?
We followed our usual process and no interest was applied on overpayments and interest on underpayments was included under the “other expenses collectively charged” component of the administration rate.
When will the credit for overpayments be applied to my account? And how do I know how much the total adjustment was?
We’ve applied credits to impacted accounts. They may have appeared on your account as separate transactions.
You'll see the total of the loss-of-earnings recalculation benefit adjustment overpayment in the summary section of your statement. You’ll also see the total adjustment amount in the letter you received.
When will any debits for underpayments be applied to my account? And how do I know how much the total adjustment was?
The debits will be applied as each person claims their benefits. You'll see the total of the loss-of-earnings recalculation benefit adjustment in the letter you received. Individual transactions for these adjustments can be found on your monthly statement and may appear on your weekly Schedule 2 invoice in May 2024.
How will I know if all underpayments for my account have been adjusted and applied to my account?
More information about distributed adjusted underpayments will be available at wsib.ca/aboutrecalculation moving forward.
General FAQ
I did not receive a letter, does this mean I am not entitled to this payment?
We’ve checked all the claims in the affected time period, and we only sent a letter to businesses and people with past claims that needed to be recalculated.
How did this error happen? And could it happen again?
Unfortunately, there was an error in our system in how some cost-of-living adjustments were applied. An update has been applied to eliminate the error and we have taken further steps to help ensure an error like this cannot occur again.
How is the WSIB funding these loss-of-earnings recalculation payments?
Premiums paid by Ontario businesses go toward helping people who have experienced a workplace injury or illness and the costs associated with their claim. These associated costs include adjustments to loss-of earnings to incorporate changes in cost of living using Canada’s Consumer Price Index.