Reporting for Personal Coverage
Personal Coverage is insurance that is purchased specifically for business owners (sole proprietors, partners and directors of corporations) based on a specific amount of income they want to insure.
The amount of payment received in the event of wage loss is related to that coverage amount only. Workers' coverage, on the other hand, and the benefits they are paid in the event of a workplace injury or illness, is based on the amount they actually earn. As such, the manner in which these two coverage types are managed by the WCB is different.
Is the reporting process for Personal Coverage different than for workers?
The process for reporting and paying for Personal Coverage is different than that of workers. With worker coverage, you are required to report the workers' actual earnings for the previous year and their estimated earnings for the current year. When you have Personal Coverage, you don't need to report your actual earnings or estimated earnings. You simply inform the WCB of the level of coverage you would like to purchase and your cost is based on that amount.
For 2020, the minimum amount of coverage available for business owners is $25,290 per year, per individual. The maximum amount of coverage in 2020 is $513,990 per individual.
What is the process for managing my Personal Coverage account?
Once approved, coverage is in place until December 31st of each year. As long as your account is paid up to date, your coverage will be automatically carried over into the next year at the level you had previously requested. You do not need to report back to the WCB on actual earnings because payments are based on the level of coverage you purchase.
The information you need to maintain your Personal Coverage account will be sent to you in December followed by an account statement in January. Your account statement will provide you with the following details:
- Current year's rate
- Current year's coverage level (based on the coverage amount you carried in the previous year or another amount you notified us of)
- Total premium owing
- Payment requirements.
Because Personal Coverage is based on a specific insured amount, you may choose to substantiate your earnings now to ensure a benefit level that represents your coverage level in the event of a workplace injury. If you do not substantiate your earnings now and you experience an injury, you will be paid based on the minimum wage loss level ($25,290 in 2020) until such time as your earnings can be substantiated. If you are applying for the minimum coverage level, you are not required to substantiate your earnings.
To substantiate your earnings, the WCB reviews your income tax returns and supporting documents from the previous one to two years. The WCB may obtain this information from Canada Revenue Agency (CRA) or another independent source signed by a certified accountant (CPA, CA, CGA or CMA). On occasions, the WCB may require additional documents to substantiate your earnings.
When is payment due for Personal Coverage?
If you have Personal Coverage only - meaning you do not employ workers - the first payment on your account is due January 31.
If you have Personal Coverage and Worker Coverage your first payment will be due May 30. The remaining payments will be aligned with your selected payment option.
Accounts with total premiums of less than $5,000 have the option to pay by Visa or Master Card. Additional payment options are also available. The minimum annual premium is $100.
If not paid, coverage will be cancelled and depending on the type of business you are in, cancellation of coverage may limit your ability to secure contracts in the future.
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