Reconciliation guide

Click on the more information icons within the guide for more information about each section.

Reconciliation Form Sample page 1

Reconciliation Form Sample page 2

Box 1, Total Earnings per T4 Summary

Enter the total gross earnings for all employees including the earnings of out of province employees who do work in Ontario, and executive officers as reported on Line 14 of the T4 summary.

You are responsible for reporting earnings for:

anyone you employ in your business, including family. Full-time, part-time, seasonal or temporary employees, certain domestic employees, unregistered individuals engaged in construction work, students, apprentices, learners and training participants
yourself – if you are an independent operator, sole proprietor, partner or executive officer in the construction industry. See our policy on Expanded Compulsory Coverage in Construction for exceptions.

For details and exceptions, please see our policy on Determining Worker and Independent Operator Status.

If you amend a T4, T4 Summary or other earnings after filing the WSIB reconciliation, you must report the amendment to us.

Additional Information for Construction businesses

Independent operators

Not applicable to independent operators.

Sole proprietors

Enter the total gross T4 earnings for all employees, including earnings of out of province employees who do work in Ontario.

If you have employees who come to Ontario to work, or who work in more than one Province or Territory, please see our policy on Non-Resident Workers and Insurable Earnings –lnterjurisdictional Agreement for more information.

Partnerships

Enter the total gross T4 earnings for all employees (if applicable), including earnings of out of province employees who do work in Ontario.

If you have employees who come to Ontario to work, or who work in more than one Province or Territory, please see our policy on Non-Resident Workers and Insurable Earnings –lnterjurisdictional Agreement for more information.

Corporations

Enter the total gross T4 earnings for all employees (if applicable), including earnings of out of province employees who do work in Ontario, as reported on line 14 of the T4 Summary.

If you have employees who come to Ontario to work, or who work in more than one Province or Territory, please see our policy on Non-Resident Workers and Insurable Earnings –lnterjurisdictional Agreement for more information.

Enter the total gross T4 earnings for all executive officers as reported on line 14 of the T4 Summary. See more information on executive officers in construction.

Box 2, Other Earnings not on T4 Summary

Enter the total gross earnings not reported on T4s for all employees. Include T4As unless issued to contractors/subcontractors, see box 3. Include the non-T4 earnings of executive officers.

For more information see insurable earnings and for a complete list of insurable gross earnings and non-insurable gross earnings see 14-02-08, Determining Insurable Earnings.

Additional Information for Construction businesses

Independent operators

Not applicable to independent operators.

Sole proprietors

Enter the total gross earnings not reported on T4s for all employees including T4As (except those issued to contractors/subcontractors).

Enter net business income (Line 135 – T1 General or T2125 Statement of Business or Professional Activities) for sole proprietor’s earnings. If net business income is zero or negative, enter $0.

If net business income is unknown, use the minimum amount (one-third of WSIB annual maximum) unless the annual estimated amount is greater. Report actual amount when the net business income is known or T2125 is filed.

Do not report sole proprietor’s earnings, if the sole proprietorship met the requirements for the home renovation work exemption for all of 2018, see our policy on Expanded Compulsory Coverage in Construction.

Partnerships

Enter the total gross earnings not reported on T4s for all employees (if applicable) including T4As (except those issued to contractors/subcontractors).

Enter net business income (Line 135 – T1 General or T2125 Statement of Business or Professional Activities) for partners’ earnings. If net business income is zero or negative, enter $0 for partners’ earnings.

If net business income is not known, use the minimum amount (one-third of WSIB annual maximum) unless the annual estimated amount is greater. Report actual amount when the net business income is known or T2125 is filed.

For examples of how to calculate insurable earnings see information for partners in a partnership (with or without employees)

Do not report partners’ earnings, if the partnership met the requirements for the home renovation work exemption for all 2018.

For information regarding the home renovation work exemption, please see Expanded Compulsory Coverage in Construction.

Corporations

Enter the total gross earnings not reported on T4s for all employees and/or executive officers (if applicable) including T4As, T5s etc. (except those issued to contractors/subcontractors).

For examples of how to calculate insurable earnings see information for executive officers of a corporation with employees.

Do not report executive officers’ earnings, if the corporation met the requirements for the home renovation work exemption for all 2018. For information regarding the home renovation work exemption, please see our policy on Expanded Compulsory Coverage in Construction.

For more information see our policy on Insurable Earnings – Construction.

Box 3, Contractors’ Earnings

If you did not engage contractors/subcontractors proceed to box 4.

If you had contractors/subcontractors considered your employees (workers) by the WSIB, enter their total insurable gross earnings on this line. For more information, see gross earnings of contractors/subcontractors.

Additional Information for Construction businesses

Independent operators

Report the total of the labour portion of all your contracts/invoices for 2018 on this line.

For information about adequate/inadequate records see Labour, materials and equipment.

For examples of how to calculate insurable earnings see information for independent operators.

Sole proprietors, Partnerships, and Corporations

If you made payments to contractors/subcontractors considered your employees(workers) by the WSIB, enter their total insurable gross earnings based on the labour portion of the contracts.

See insurable earnings for more information.

Box 4, Volunteer Forces (complete enclosed Schedule, if applicable)

Only businesses with volunteer forces (fire, ambulance, and police) should complete the Schedule for Volunteer Forces. Enter the total in box 4 on the reconciliation form. All other businesses should proceed to box 5.

Box 5, Optional Insurance (see Attachment 1, if enclosed)

If there is no pre-printed amount in this box, proceed to box 6.

The pre-printed amount is the total optional insurance amount that was in effect for sole proprietors, partners, independent operators or executive officers for this reconciliation period. Do not change this amount.

Attachment 1 gives details of optional insurance for all persons covered during this reconciliation period, for your information and records. The total amount of insurable earnings, on Attachment 1, for all persons with optional insurance, should equal the amount of optional insurance in box 5 on the Reconciliation Form.

Box 6, Total Gross Earnings Before Deductions

Add boxes 1 to 5 and enter the total here. Amounts under volunteer forces (box 4) and optional insurance (box 5) are fully insurable and not subject to deduction.

Additional Information for Construction businesses

Independent operators

This is the total labour portion from box 3 or optional insurance from box 5.

Box 7, Non-Insurable Gross Earnings

Enter any non-insurable gross earnings included in box 1 and 2, including the portion of earnings of out of province employees that is for work done in other Canadian jurisdictions outside of Ontario.

For more information see our policy on Determining Insurable Earnings.

If you have out of province employees, or employees who work in more than one Canadian Province or territory, go to our policy on Non-resident Workers and Insurable Earnings - Interjurisdictional Agreement.

Additional Information for Construction businesses

Independent operators

Not applicable to independent operators.

Sole proprietors, Partnerships, and Corporations

Enter any non-insurable gross earnings included in box 1 and 2.

Enter the sole proprietor’s, partners’, and executive officers’ gross earnings included in box 1 and 2 for any time period they were exempt from mandatory coverage because they were engaged in exempt home renovation work (subject to the three month coverage period minimum).

For more information on insurable earnings in construction, see Insurable Earnings in Construction (PDF) and Expanded Compulsory Coverage in Construction (PDF).

Box 8, Executive Officers’ Earnings

For businesses that are not in the construction industry, enter the total executive officers’ gross earnings included in boxes 1 and 2.

Additional Information for Construction businesses

Independent operators

Not applicable to independent operators.

Sole proprietors

Not applicable to sole proprietors with employees.

Partnerships and corporations

Enter partners’ and executive officers’ earnings included in boxes 1 and 2 for the time period they were exempt from mandatory coverage because of an approved exemption for one partner or executive officer in the partnership/corporation. If you do not have an approved partner or executive officer in construction - exemption from coverage form (PDF) on record with the WSIB, for a part or all of the reconciliation time period, do not deduct their earnings from box 8.

More information on executive officers in construction.

Box 9, Excess Earnings

If you have employees or contractors whose gross earnings exceed the 2019 annual maximum insurable earnings ($92,600), enter the total excess earnings for these employees here.

If you are closing an account in 2020, the 2020 maximum insurable earnings ceiling is $95,400.

To calculate each individual worker’s (or contractor’s) excess earnings, subtract the annual maximum insurable earnings from their total earnings reported in boxes 1, 2 and/or box 3, if applicable.

Additional Information for Construction businesses

Independent operators

If the total from box 6 exceeds the annual maximum of $92,600 for 2019 or $95,400 for 2020, deduct the difference on this line.

Sole proprietors and partnerships

If the net business income for the sole proprietor (after any deductions on box 7) exceeds the annual maximum of $92,600 for 2019 or $95,400 for 2020, deduct the difference on this line. For additional information on see excess earnings.

Corporations

If the T4 earnings for an executive officer (after any deductions on box 7) exceeds the annual maximum of $92,600 for 2019 or $95,400 for 2020, deduct the difference on this line. For additional information see excess earnings.

Box 10, Total deductions

Add boxes 7 , 8 and 9. Enter the total here.

Additional Information for Construction businesses

Independent operators

Amount in box 9 (if applicable)

Sole proprietors, partnerships, and corporations

Add boxes 7 to 9 and enter the total amount in this line.

Box 11, Total insurable earnings

Subtract the amount in box 10 from the amount in box 6 and enter the difference here.

These are the total insurable earnings on which premium calculations are based.

Section B - Allocation of total insurable earnings by classification unit

For accounts with only one classification unit (CU), all earnings are considered direct. See more information on allocating direct earnings and common earnings.

You must complete section B to ensure the insurable earnings are allocated correctly. On the form you will have one or more pre-printed CU.

One CU preprinted in section B

Enter the amount from box 11 in column A, direct earnings and in column C, insurable earnings.

Proceed to section C - premium calculation.

Two or more CUs preprinted in section B

Businesses reporting under multiple CUs must maintain segregated earnings records for each CU.

You must assign the insurable earnings of each employee, including optional insurance amounts (included on Attachment 1, if applicable) to one or more of the CUs.

In most cases you will have earnings that apply directly to each CU and earnings that are common to two or more CUs.

Additional Information for Construction businesses

Independent operators, sole proprietors, partnerships and corporations

For those with multiple rates use the amounts calculated on the Worksheet for calculating and assigning common earnings in construction (PDF).

Column A Assigning direct earnings

Add up the direct earnings assigned to each CU. Enter the total in section B of the Form beside the appropriate CU in column A, direct earnings.

If you have no common earnings, also enter the direct earnings totals into column C, insurable earnings.

Proceed to section C - Premium calculation.

Column B - Assigning common earnings

Transfer the common earnings for each CU from column 3 on the Worksheet for calculating and allocating common earnings (PDF) under Common Earnings(column B) on the reconciliation form.

Transfer the insurable earnings for each CU from column 4 on the worksheet to column C, insurable earnings on the reconciliation form.

For details on how to calculate and prorate common earnings for businesses with multiple classification units, see assigning insurable earnings.

Additional Information for Construction businesses

For businesses in the construction industry who are classified in rate group 755, do not assign common earnings to this rate group.

Section C — Premium calculation

Transfer the insurable earnings (Section B column C) for each CU to the appropriate CU under (column C).

Box 12, Total insurable earnings

Add all entries under section C, column C and enter the total in box 12. If this amount does not equal the amount in section A, box 11, review your calculations.

Box 13, Total premium amount

To calculate the premium for each CU, multiply the amount in column C by the premium rate pre-printed on the form in column D, then divide by 100.

Premium = Insurable earnings x premium rate ÷ 100

Enter the result in the CU Premium column. Add up the premiums for all the CUs and enter the total or the $100 minimum premium (whichever is more) in box 13.

A minimum premium of $100 applies to accounts that are open during any part of a calendar year, even if no premiums are reported.

Box 14, Total Premium Amount Reported

This amount shows the WSIB’s record of the total premium amount already reported on all premium remittance forms for the reconciliation period covered, and reflects any further revisions or adjustmentsprocessed by the WSIB by the date the reconciliation form is printed.

The amounts on the reconciliation form may not match your records because they may not show the most recent reporting period. The amount recorded is the total premiums reported throughout the year, not premiums actually paid.

In case the amount we show reported does not match your records, consult your latest premium remittance form. The difference may be because we did not receive your latest reporting prior to printing the reconciliation form.

Box 15, Reconciled difference

Subtract the amount in box 14 from box 13 and enter the difference here.

If the amount is negative, enter the amount in box 16.

If the amount is positive, enter the amount in box 17.

The WSIB calculates these amounts and enters them on your Statement of Account along with the entry for the reconciled difference.

Return the reoconciliation form even if the reconciled difference or total insurable earnings are zero. Failure to do so could result in non-compliance interest and charges

Box 16, Credit to Account

If your account is open, the WSIB will apply the year end reconciliation credit (plus interest) to any balance owing on your account for this or upcoming reporting periods.

If your account is closed and there is a net credit, the WSIB will refund the credit.

Box 17, Amount Due

This is the amount you owe the WSIB.

Box 18, Amount Paid

Enter the amount of the payment you are making.

Section D — Certification

Complete all areas of section D.

Print the name, title, and telephone number of the owner or authorized officer of the company who is certifying the reconciliation form. This person must sign the certification section.

You still must return the form if the reconciled difference or the total insurable earnings is zero.