Decision #140/01 - Type: Workers Compensation
Preamble
A non-oral file review was held on October 2, 2001, at the employer's request.
Issue
Whether or not the Workers Compensation Board should adjust workers' earnings reported by the employer for the 1997 and 1998 calendar years.
Decision
That the Workers Compensation Board should not adjust workers' earnings reported by the employer for the 1997 and 1998 calendar years.
Background
In a letter dated April 24, 2001, the company's sole proprietor indicated that she had mistakenly reported the earnings of a family member to the Workers Compensation Board (WCB) from 1997 to 2000 inclusive. The employer stated that it had removed the family member's earnings from their 2001 estimated assessable workers' earnings and requested a possible adjustment or refund for the previous years.
File information revealed that the WCB adjusted the employer's workers' earnings for 1999 and 2000. The case was then referred to the Assessment Committee to determine whether or not the workers' earnings should be adjusted for 1997 and 1998.
In rendering its decision of July 10, 2001, the Assessment Committee noted that it considered the WCB's liability in this case. If the family member had been injured in 1997 or 1998 and the employer confirmed earnings were reported to the WCB, then the WCB would have had no alternative but to consider this individual as a worker under the Act. Since the WCB was exposed to the possibility of having to cover this individual as a worker, then the employer must be held responsible for the corresponding assessment. It was therefore determined by the Assessment Committee that there would be no adjustment to workers' earnings reported for 1997 and 1998. On July 27, 2001, the employer appealed this decision to the Appeal Commission and a non-oral file review was arranged.
Reasons
The facts of this case are fairly straightforward. The employer, a sole proprietor, mistakenly reported the earnings of a family member to the WCB from 1997 to 2000, inclusive. An application is brought by the employer to have the WCB reverse the worker's earnings over the periods in question. The Assessment Committee, in accordance with WCB policy 35.30, allowed the reversal of the employer's account for the 1999 and 2000 calendar years only. The employer then appealed this decision, as in her view the 1997 and the 1998 accounts should have been adjusted as well.
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 current complete fiscal years of the employer ". In keeping with the intent of this policy, the WCB's Employer Services Division uses this two-year time frame as a guideline when adjusting workers' earnings for previous years.
The employer presented no new evidence, which would suggest a further adjustment. We agree with the Assessment Committee's decision that the policy does not make provision for any further adjustment beyond the two most recent calendar years. Accordingly, we find that the WCB should not adjust the workers' earnings reported by the employer for the 1997 and 1998 calendar years. Therefore, the employer's appeal is hereby dismissed.
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 2nd day of November, 2001