Decision #113/00 - Type: Workers Compensation
An Appeal Panel review was held on October 25, 2000, at the request of the appellant.
Whether or not the employer should be charged an assessment of $275.48 for the 1998 calendar year.
That the employer should be charged an assessment of $275.48 for the 1998 calendar year.
On March 3, 1998, the appellant completed an Employer's Statement of Workers' Earnings for 1998 indicating that special coverage was requested in the amount of $24,000.00.
On two occasions in June 1998, the appellant contacted Employer Services to cancel his coverage. Coverage was cancelled effective June 23, 2000. File information indicated that the amount used to cancel was the coverage amount applied for of $24,000.00, prorated based on the number of days coverage was in effect. A Notice of Assessment was sent to the appellant on June 25, 1998, indicating the cancellation and requesting payment of $457.50.
In an appeal submission dated February 16, 2000, the appellant stated that as there was no workers compensation coverage in place for the company for this time period, they should not be assessed for this amount. The applicant was contacted on March 23, 2000, who indicated that he had no income for 1998 as the firm did not work during 1998.
On May 5, 2000, the Assessment Committee rejected the appellant's appeal and determined that the employer was required to pay the revised outstanding amount of $275.48 based on the following rationale:
- as the Director did not have any earnings in 1998, the firm should be charged the minimum;
- the firm advised that coverage should be cancelled as of June 16, 1998 and coverage was not cancelled until June 23, 1998.
- as coverage was in place from January 1 through to June 16, 1998, the firm was required to pay the assessment for the minimum coverage.
In an appeal submission dated June 14, 2000, the appellant appealed the Assessment Committee's decision to the Appeal Commission. The appellant indicated that the firm did not pay salaries for 1998. As there was no coverage required, it was felt the revised amount of $275.48 was unfair. A non-oral file review was arranged.
The appellant corporation submitted an application to the WCB requesting special coverage for its sole director. The corporation's accountant signed the application on February 27th, 1998. The WCB posted and processed the form on or about March 16th, 1998. Special coverage was immediately put into force for the director and was to remain in effect until December 31st of that year, unless the corporation made a request for cancellation. The director of the corporation did in fact phone the WCB and cancelled his coverage effective June 16th, 1998. The WCB charged the corporation an assessment of $275.48 for the period of January 1st, 1998 to June 16th, 1998 while the coverage was in place.
The corporation objected to the payment of this assessment on the basis that it did not pay any salaries for 1998 and therefore no coverage was required. If we were to accept such an argument, then by analogy a homeowner should be entitled to the return of his fire insurance premium if his house did not burn down during the year of coverage. We fail to appreciate the corporation's argument or logic and consequently, we find that the assessment of $275.48 should be charged.
R. W. MacNeil, Presiding Officer
A. Finkel, Commissioner
B. Leake, Commissioner
Recording Secretary, B. Miller
R. W. MacNeil - Presiding Officer
(on behalf of the panel)
Signed at Winnipeg this 20th day of November, 2000