The Appeal CommissionThe Workers Compensation Act of Manitoba

Preamble

The firm is appealing the decision made by the Workers Compensation Board (“WCB”) that the firm is responsible to pay $2,021.39 in unpaid premiums and penalties. A file review was held December 2, 2025 to consider the firm's appeal.

Issue

Whether or not the firm is responsible to pay $2,021.39 in unpaid premiums and penalties.

Decision

The firm is responsible to pay $2,021.39 in unpaid premiums and penalties.

Background

The firm requested coverage from the WCB on November 17, 2022 for a business and provided an estimated payroll amount. On November 23, 2022, the firm asked the WCB to activate their coverage immediately as the firm wanted to begin service. The WCB provided the firm with a confirmation letter on the same date, setting out the premium rates and advising how the premiums were calculated, along with noting payroll reporting responsibilities for the firm.

Starting in 2023, the firm was advised that various payments were past due, including on January 19, 2023, a $100.00 account payment. On May 1, 2023, the firm was sent a letter advising if their payroll reporting was not received, an imposed payroll (estimate) would be used by the WCB to set their rate and premiums. In addition, the letter advised that if the information was not received by February 28, 2024, their 2022 premiums could not be reduced.

No payroll reporting was received. The WCB's Assessment Services estimated the firm's payroll for 2022 and 2023, with an imposed increase of 20% as per the WCB's policies. It was noted a $100.00 payment was received on the firm's account on April 30, 2023. Past due notices for the balance were sent out to the firm on June 19, 2023 and July 20, 2023.

Additional premiums became due in 2024 and 2025, with the premiums for 2022 becoming locked in 2022, and for 2023, locked in 2025. On August 13, 2025, the WCB advised the firm they had an outstanding account of $4,749.81.

On August 28, 2025, the firm provided information to the WCB to advise they had no payroll for 2022 to 2025 and were requesting a reassessment on that amount and the closure of their account.

On September 3, 2025, the WCB confirmed the firm would be eligible for a 50% reduction in premiums for 2024, based on a surplus distribution. The firm requested relief for the full amount outstanding on the account. A decision letter was provided on September 5, 2025, advising the amounts owing for 2022 and 2023 were locked and would not change, and a minimum assessment was applied for 2024 and 2025.

The firm requested reconsideration of the amount outstanding, being $2,021.39, to Review Office on September 5, 2025. The firm asked for the amount to be reduced based on the actual payroll of $0. Review Office determined on October 6, 2025, the firm was responsible for payment of $2,021.39 in unpaid premiums and penalties. Review Office found the firm failed to report payroll information to the WCB when requested and the amounts for 2022 and 2023 were locked at the end of February 2024 and 2025 respectively and could not be changed. Review Office further found the firm was aware of their responsibilities to report and pay the premiums and had made a partial payment in April 2023. As such, Review Office found the firm was responsible to pay the amount outstanding.

The firm filed an appeal with the Appeal Commission on October 8, 2025 and a file review was arranged.

Reasons

Applicable Legislation and Policy

The Appeal Commission and this panel are bound by The Workers Compensation Act ("the Act"), regulations made under that Act, and the policies established by the Workers Compensation Board of Directors.

Section 80 of the Act requires employers covered by the Act to furnish the WCB with an estimate of their payroll for the following year as well as certified copies of the payroll at the end of the year, and provides for penalties where employers fail to do so. The relevant sections of the Act are as follows:

Payroll estimates and certified copies of payroll

80(1) Within 30 days after becoming an employer, and on or before the last day of February in each year after that, an employer must provide the board with

(a) a certified copy of the employer's payroll for the preceding year, if any, for each undertaking in an industry to which this Part applies; and

(b) the employer's estimate of the amount of the payroll for the current year for each undertaking in an industry to which this Part applies, along with any other information the board requires for

(i) assigning the employer or undertaking to a class, sub-class, group or sub-group, and

(ii) making an assessment under this Act.

Late filing penalty

80(1.1) An employer who fails to comply with subsection (1) is liable to pay a penalty equal to the following percentage of the employer's assessment for that year (determined without reference to this penalty):

(a) 5%, if the failure continues for a period of 61 days or less;

(b) 10%, if the failure continues for a period of more than 61 days.

Waiver of penalty 

80(1.3) The board may reduce or waive, in accordance with its policies, any penalty imposed by subsection (1.1).

Section 80(6) of the Act sets out the circumstances in which WCB may estimate the payroll of the employer, as follows:

Board may estimate assessment

80(6) Where

(a) an employer does not furnish the board with the prescribed statement within the prescribed time;

(b) the statement referred to in clause (a) does not, in the board/s opinion, reflect the probable amount of the payroll of the employer or correctly describe the nature of the different classes of work carried on; or

(c) an employer fails to produce documents or books in response to a notice served under subsection 99(3);

the board may base an assessment or supplementary assessment on a sum that in its opinion is the probable amount of payroll or the correct nature of the different classes of work carried on, and the employer is bound thereby.

Subsection 81(9) of the Act provides that the board must not levy an assessment for an amount that is less than the minimum assessment prescribed by regulation. The minimum assessment prescribed by Manitoba Regulation 123/2021, Interest and Financial Matters Regulation, is $100.

The WCB has established Policy 35.05.10, Reporting and Verifying Payroll (the “Policy”) to describe the process for employers to follow when reporting payroll, as well as the consequences of late reporting, failing to report, and inaccurate reporting of payroll. The Policy provides for how and when penalties are assessed against employers for late reporting of workers’ payroll as follows:

Employers in mandatory industries are responsible for providing payroll information to the WCB for the purpose of determining premiums. Employers need to provide payroll information to the WCB at the outset of employing workers and annually thereafter.

By the last day of February in each year, employers are required to submit estimates of payroll for the current year and actual payroll for the preceding year. Any difference in actual payroll compared to the estimated payroll from the preceding year will be reconciled and adjusted if necessary. Once this information is received, the WCB will notify the employer of the premium due.

If an employer does not submit payroll information to the WCB as required, the WCB may impose a payroll value for the employer and use that value to calculate the premium.

WCB-imposed payroll will be adjusted by the WCB when more accurate information is supplied by the employer or other sources, provided that information is received by the last day of February of the following year. After that, the WCB-imposed payroll will only be adjusted upwards if the actual payroll is shown to be higher than the WCB-imposed estimate.

…

Employers in mandatory industries are required to advise the WCB when they begin employing workers. If they do not advise the WCB within the prescribed time, a late reporting penalty will be applied to their account for each calendar year workers were employed…

…

The WCB will impose a payroll value if employer in mandatory industries do not report their payroll to the WCB as required. A non-reporting penalty will be applied to their account.

…

Non-reporting penalty amounts are based on the WCB-imposed payroll premiums and are prescribed by Regulation. Penalties will not be adjusted for subsequent variations to the employer’s payroll.

The Administrative Guidelines to the Policy outline a process for employers to obtain relief from late penalties, as follows:

Relief of Late/Non Reporting/Filing Penalties

…

For existing Assessment Accounts, the WCB will reverse 50% of the employer's late/non reporting/filing penalty if the employer meets all three of the following criteria:

1. The employer submitted their payroll information within 60 calendar days of the due date. 

2. The employer does not have a prior history of default… 

3. The employer has cooperated fully with the WCB…

For existing Assessment Accounts, the WCB will waive 100% of the employer's late/non reporting/filing penalty if the employer meets both of the following criteria:

1. The employer submitted their payroll information within 60 calendar days of the due date. 

2. The cause or reason for the delay was beyond the control of the employer…

The Administrative Guidelines to the Policy also provide further reporting requirement details as follows:

Annual Payroll Reporting Requirements for Mandatory Coverage

Annual Payroll Forms ("APF") are sent to registered employers in January of each year. The employer must provide their prior year actual assessable payroll and an estimate of payroll for the current year…

Employers are required to complete the APF form and return it to the WCB by the last calendar day in February.

Late or Missed Reporting Deadlines: Mandatory Coverage

• If the WCB has not received the APF by the end of the 2nd business day in March, a late reporting/filing penalty will be applied to the Assessment Account provided the information is received before May 1…

• If the WCB has not received the APF by the end of the first working day in May, the WCB will impose values as the employer’s payroll as follows:

1. The prior year actual will be imposed as the prior year estimate plus 20%. 

2. The current year estimate will be the prior year actual (as calculated in (1)) plus 20%.

 If coverage was only in effect for a portion of the year, the amount will be annualized. 

 A 10% non-reporting penalty will also be calculated based on the imposed current year premium.

3. The employer is still required to provide their actual payroll for the prior year and for the period coverage was in effect in the current year.

 If the employer submits their actual payroll amounts before March 1 of the following calendar year, the assessable payroll will be adjusted accordingly, 

 If the employer submits actual payroll amounts on or after March 1 of the following calendar year, the payroll will only be adjusted if the actual figures are more than the WCB-imposed figures. 

 If the employer advises they had not employed workers in the year the WCG imposed the payroll, the imposed values will be reversed but the minimum charge will apply in both years. This is for imposed payroll on current and the prior year – ARB Lock payroll will only be adjusted if the actual provided is greater than the imposed values. 

 Non-reporting penalties will not be recalculated based on the adjusted payroll figures. 

 The employer’s account will be considered in default until the actual payroll information is received.

Employer’s Position

The employer acknowledged that they had mistakenly not responded to communications from WCB, but noted there had been essentially no payroll for the business since inception, the business had not created any meaningful income, and the amount of the premiums charged by WCB was more than the total amount of income generated by the business. The employer indicated that they had not ever used the services of WCB.

The employer also asserted that they had not known of the payments owing to WCB, as they moved out of province after the account with WCB was created and had not received WCB’s letters. The employer argued that WCB ought to have contacted them by telephone or email before taking any action against them.

The employer also took the position that payment of the premiums and late fees charged to the business was not within their means, and that they were not able to pay it without significant financial hardship.

For these reasons, the employer asked that the amount charged to the employer by WCB be overturned or amended.

Analysis

In order for the employer’s appeal to succeed, the panel would have to find that WCB did not properly apply the relevant legislation, policies and guidelines in the determination of premiums and penalties charged to the employer. The panel is not able to make such a finding.

File information establishes that WCB corresponded with the employer on numerous occasions from 2022 through 2025 to remind them of their reporting responsibilities and to advise them of premiums due and penalties charged.

In the absence of payroll reporting from the employer by the last day of February in the following year, WCB properly estimated payroll amounts for 2022 and 2023 as required by the Policy. The estimated premiums for 2022 and 2023 were locked on March 1, 2024 and March 3, 2025 respectively when no payroll reporting was received, also as provided by the Policy. Neither penalties nor premiums were eligible for reconsideration after being locked in, pursuant to the administrative guidelines to the Policy.

When actual payroll reporting of $0 for 2024 and 2025 was received from the employer in late August, 2025, the amounts charged for 2024 and 2025 were set at the minimum amount permitted by regulation ($100), because that reporting had been received within the prescribed period for those years.

The panel notes that coverage for the employer was in place for the entire period in which premiums were charged. The fact that coverage was not needed by the employer is not a relevant consideration.

On the issue of notice, the panel does not accept the employer’s argument that they were unaware of charges that accumulated over the three-year period from 2022 through 2025, and that WCB ought to have made further efforts to contact them prior to proceeding.

The panel notes that one payment in the amount of $100 was made to WCB by way of EFT on April 30, 2023. It is not clear from the file whether the payment came directly from the employer or through a collection agency, but the fact of the payment supports a finding that the employer remained cognizant of their ongoing relationship with WCB and the related obligations.

The panel also notes that based on file information, the telephone number provided by the employer upon registration was not one at which voice mail could be left at the time. The email address provided by the employer was for their accountant, and there is a notation on file that “Email communication is not wanted”. Despite the notation, the accountant was contacted by telephone and email in May of 2024 with information about outstanding amounts. No payments or reporting were received after that contact.

The employer was advised of their responsibilities regarding payment and the provision of information to WCB upon registration, both verbally and by letter. It was incumbent on the employer to update their contact information, including their mailing address, with WCB as necessary and to manage their payment and reporting responsibilities.

For the reasons outlined above, the panel finds that the employer’s premiums and penalties were appropriately assessed. The employer’s appeal is denied and the employer is responsible to pay the amount of $2,021.39 in premiums and penalties.

The panel appreciates that the employer may face financial hardship in relation to the required payment. As the employer has been advised by WCB previously (noted on file), they have the option of contacting WCB to inquire about the possibility of a payment plan.

Panel Members

M. Murray, Presiding Officer
J. Peterson, Commissioner
M. Kernaghan, Commissioner

Recording Secretary, J. Lee

M. Murray - Presiding Officer
(on behalf of the panel)

Signed at Winnipeg this 17th day of December, 2025