Decision #112/01 - Type: Workers Compensation
Preamble
An Appeal Panel hearing was held on July 31, 2001, following receipt of an appeal from the employer. The Panel discussed this appeal on July 31, 2001.
Issue
Whether or not the WCB should charge the employer premiums for 1998, 1999 and 2000.
Decision
That the WCB should charge the employer premiums for 1998, 1999 and 2000.
Background
By letter dated November 14, 2000, the Workers Compensation Board (WCB), wrote to the employer advising that he may be employing workers in an industry considered compulsory for WCB coverage under the Workers Compensation Act (the Act).
On January 29, 2001, the employer telephoned the WCB's Employer's Services Division in order to register his company. Information obtained during this conversation revealed that the company had been in business for approximately 18 years and incurring labour costs on an annual basis of between $6000.00 and $10,000.00.
The WCB wrote to the employer on February 9, 2001, to advise that the company had been registered with the WCB for the year 2001. The letter went on to advise that the employer would be responsible for paying assessment premiums for the years 1998, 1999 and 2000. In addition to the assessment premiums, the employer was also advised that it would be responsible for paying a 5% late filing penalty for the years 1998, 1999 and 2000.
By letter dated February 21, 2001, the employer submitted the 2001 assessment documentation as required and in addition, advised that he would be appealing the WCB's decision with respect to his being responsible for the prior years assessments.
The employer's appeal was addressed by the WCB's Assessment Review Committee in June 2001 at which time it determined that the employer must pay to the WCB the minimum assessment for the years 1998, 1999 and 2000. The Assessment Review Committee also determined that the employer would not be required to pay a late filing penalty for the above referenced years.
In reaching their conclusion, the Assessment Review Committee referenced subsection 80(7) of the Act titled "Continuing liability of the employer". As the WCB is required to cover workers in compulsory industries and although the employer did not have any claims during the years in which the business was in operation, the WCB nonetheless carried the liability to cover the workers and therefore, the employer must be held responsible for paying the corresponding premiums.
The employer completed an application to appeal on June 20, 2001 requesting that an oral hearing be convened to determine the issue referred to above. The hearing was convened on July 31, 2001.
Reasons
Section 80(7) of The Workers Compensation Act prescribes the following: "Where, for any reason, an employer liable to assessment is not assessed in any year, he is nevertheless liable to pay to the board the amount for which he should have been assessed; and payment of that amount may be enforced in the same manner as the payment of an assessment may be enforced."
WCB policy 35.30 provides in part: "Where an employer who comes within the scope of the Workers Compensation Act is selected for a payroll audit to determine compliance with the Act, Regulations and policy, the scope of the audit will normally cover the two most complete fiscal years of the employer."
The Appeal Commission is bound by the provisions of the Act and in particular section 60.8(5), which states, "The appeal commission is bound by the policies of the Board of Directors." In accordance with the Act and WCB policy, we find that the employer is responsible and must pay the assessed premiums for fiscal years 1998, 1999 and 2000. Accordingly, the employer's appeal is hereby dismissed. If it's any consolation to the employer, we note that the WCB decided to waive payment of late filing penalties for the aforementioned years.
Panel Members
R. W. MacNeil, Presiding Officer
A. Finkel, Commissioner
M. Day, Commissioner
Recording Secretary, B. Miller
R. W. MacNeil - Presiding Officer
(on behalf of the panel)
Signed at Winnipeg this 30th day of August, 2001