Loss-of-earnings recalculation payments

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 are now setting things right.

In September 2023, we began sending 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 follow the instructions included in your letter and/or visit wsib.ca/recalculation to confirm or update your address and banking information. You’ll need the six-digit code that is included in your letter.
  • If you currently receive ongoing benefits from us and your claim is affected, you’ll receive a letter before the end of the year with details about adjustments to your benefit rates. There is no action for you to take – we'll let you know when we’ve made the correction.
  • If you’re a Schedule 1 or Schedule 2 business and you received a letter from us about this, 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’ve checked all the claims in the affected time period and are only sending letters to businesses and people with claims impacted by the error.

FAQ for people with claims

If I currently receive benefits from the WSIB, how will they be affected?

As this error was fixed in an update made in 2018, a very small number of people currently receiving benefits from the WSIB are affected. If you currently receive loss of earnings benefits from the WSIB and your claim is affected by this calculation error, you will receive a letter before the end of the year that outlines the change to your payment going forward. There is no action you will need to take – we'll let you know when we’ve made the correction.

If you are owed benefits because of this calculation error, we’ll reimburse the amount we owe you, with interest, and your ongoing benefit rate will be 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 will get a call from a case manager and you won’t have to reimburse us for this overpayment, but your ongoing benefit rate will be adjusted to reflect the correct amount.

Once your claim is adjusted, you will see changes on either your next pay cycle or the following one. 

I received a letter but it says that I’m not owed a payment. Why, and what do I do next?

There’s nothing for you to do next. In some cases, deductions, including existing overpayments, assignments or advances on an account or garnishments, were applied to people’s payments. 

Your personalized letter will let you know if a deduction has been applied and will list your total credit before any deductions were made, the amount of the deductions applied, and the final total including all deductions.

I received a letter and I’m owed a payment. What do I do next?

Your letter includes all of the information you need to receive your payment. 

If we need to confirm your address and banking details, we’ll let you know in your letter and direct you to wsib.ca/recalculation to submit your information. You’ll need to enter the six-digit code included in your letter when you visit that page.

How long will it take to receive my payment?

If we need to confirm your address and banking details, we’ll let you know in your letter and direct you to wsib.ca/recalculation to submit your information. You’ll need to enter the six-digit code included in your letter when you visit that page. 

 It can take up to six weeks from the date you submit your information to receive your payment. Once you have submitted your information, you can visit wsib.ca/recalculation to check the status of your payment.

If you receive ongoing benefits from the WSIB and you’re owed a payment, you will receive a letter by the end of 2023 with information about your adjustment. Your payment will then be processed automatically and will appear on the next pay statement or the following one. 
 

I lost my letter, can you send me another copy?

You can contact us to request another copy of your letter.

Will people with claims ever owe any money back to the WSIB as a result of this calculation error?

No. People who received overpayments due to the calculation error will not be required to reimburse the WSIB.

Is this payment considered part of my income?

Yes, your loss-of-earnings benefit recalculation payment (and the interest that will be included in your 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. You can do this by taking no action on the letter you receive, or by giving your information at wsib.ca/recalculation and opting out there.

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, you’ll receive a separate T5007 tax form for each claim.

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?

The WSIB pays 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.

I received a letter intended for a person who is deceased indicating 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, you need to visit wsib.ca/recalculation to confirm or update the address of record for the estate and banking information for the estate to receive the payment.

Am I entitled to any additional payments as a result of this calculation error?

No. This is a one-time payment. It does not affect any future payments. The calculation error has been resolved and there will be no additional payments.

However, if you currently receive ongoing benefits from the WSIB and your letter indicated that your ongoing benefit rate will increase as a result of the calculation error, you will be notified before the end of the year and then continue to receive the new, corrected rate moving forward.

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 are making every 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 1-416-874-4340 (toll free 1-833-874-4340) Monday to Friday, between 9 a.m. and 5 p.m. Eastern Time.

Why does my letter have a different phone number than your regular number?

We have a dedicated team and phone number for people who have received letters about this recalculation. You can call our dedicated line at 1-416-874-4340 (toll free 1-833-874-4340) from 9 a.m. to 5 p.m., Monday to Friday.

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 are sending letters to every person and every business impacted by the error. If your business has not received a letter from us by October 2023, you are 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, 2021, 2022 and 2023 as 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 2023. Future claim costs that fall within the rate-setting window will be applied when we set premium rates.

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.

What interest rate will be applied to the retroactive experience rating adjustment?

The WSIB pays 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 adjustments will be covered collectively for Schedule 1 businesses and recalculation efforts will not 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 mid-September. 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 have identified and adjusted all impacted claims on your account. Please email experiencerating@wsib.on.ca and include your account number or call us at 1-800-663-6639 if you believe there is an error on your claims 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. 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 experiencerating@wsib.on.ca 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 premiums have 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 has 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 when the recalculation is complete: 

  • Accident cost statement will be mailed to you to assess the impacted claims
  • Premium rate summary statement will be available through your online services account to assess the impact to your premium rates from 2020, 2021, 2022, and 2023 
  • Experience rating statements will be mailed to you to assess the impacted history claims within the 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 and we will 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 would like to receive a cheque for any credits applied to your account, please email employeraccounts@wsib.on.ca 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 rebate but your account is not in good standing, we will apply a 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 will be applied separately as a credit on accounts starting this fall. Any underpayments and the corresponding administration charge, excluding interest, will be applied separately as a debit when people claim their benefits.

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 revised 2023 rate and the 2024 provisional administration rate calculation will reflect any adjustments due to our loss-of-earnings recalculation. More information will be shared when we communicate the 2024 provisional rate.

Will there be interest applied on the overpayment or underpayment amount owed?

We will follow our usual process and no interest will be applied on overpayments and interest on underpayments will be 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 will start to apply credits to impacted accounts this fall and they may appear 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, monthly transactions for these adjustments can be found on your monthly statement.

How will I know if all underpayments for my account have been adjusted and applied to my account?

We will make more information about distributed adjusted underpayments available on our web-site at wsib.ca/aboutrecalculation later this fall.

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. A small number of people with active claims will hear from us by the end of the year but will not have to take any action for the adjustment to be applied.

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.