Decision #05/26 - Type: Workers Compensation
Preamble
The employer is appealing the decision made by the Workers Compensation Board (“WCB”) that they are required to pay the outstanding balance on their account. A teleconference hearing was held December 3, 2025 to consider the employer's appeal.
Issue
Whether or not the employer is required to pay the outstanding balance on their account.
Decision
The employer is required to pay the outstanding balance on their account.
Background
The employer became an active account in 2020 and was advised by the WCB by way of a letter from Assessment Services on May 28, 2020 that there would be a minimum annual premium amount of $100.00. In each of 2023, 2024 and 2025, the employer submitted their payroll information to the WCB. For 2024 and 2025, the employer advised they were not employing any workers.
On May 20, 2025, the employer contacted the WCB to ask about a charge on their account for $100.00 as they did not have any payroll amount for 2024. At that time, the WCB's Assessment Services advised the employer that the $100.00 charge was the minimum charge for an active account and even if the account was closed, the employer would still be responsible for paying the $100.00 balance. On May 22, 2025, the WCB provided the employer with a letter confirming their account was closed but that they were still responsible for payment of the outstanding balance on their account.
The employer requested reconsideration of the WCB's decision to the Review Office on May 22, 2025, for the outstanding balances for the 2024 and 2025 minimum charges of $100.00 each, which the Review Office noted was reduced by 50% due to surplus distribution, bringing the total balance owing of $100.00. On September 15, 2025, the Review Office determined the employer was required to pay the outstanding balance on their account as the WCB's Assessment Services correctly applied the minimum fee as required by the WCB's regulation and policies.
The employer filed an appeal with the Appeal Commission on September 25, 2025, and a hearing was arranged.
Reasons
Applicable Legislation and Policies
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.
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.
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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.
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The WCB will impose a payroll value if employers in mandatory industries do not report their payroll to the WCB as required. A non-reporting penalty will be applied to their account.
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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
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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…
Employer’s Position
The employer was represented at the hearing by their Chief Executive Officer and an employee. The employer made an oral submission to the panel and responded to questions posed by members of the panel.
The employer’s position is that an error was made, and they were not advised that an administrative charge would be applied to their account each year it remained active.
The employer states that they were provided with incorrect information from the WCB when they were told that they could keep their account open, despite not having any employees or payroll. The employer’s evidence is that they understood it to be more convenient for the WCB to leave the account open, rather than close it and reopen it if they were to have employees in the future and that there was no consequence to doing so. It is for that reason that they left their account active. The employer submits that they would not have kept their account open if they were aware there would be an administrative charge.
The employer submits that the WCB made an error and the error ought to be corrected. For these reasons, the employer asks that the amount charged to them by WCB be canceled or waived.
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.
The evidence establishes that the employer became an active WCB account in 2020 and was clearly advised by Assessment Services, by letter dated May 28, 2020, that a minimum annual premium of $100.00 would apply. This minimum assessment is prescribed by regulation and is mandatory pursuant to Subsection 81(9) of the Act and the Regulation. The panel finds that the WCB had no discretion to levy an amount lower than the prescribed minimum assessment while the employer’s account remained active.
The panel also finds that the employer submitted payroll information for 2023, 2024, and 2025, and that for 2024 and 2025 it reported no workers. While the employer did not have payroll in those years, the legislation and regulation do not eliminate the minimum assessment requirement for active accounts without payroll. The minimum assessment applies regardless of whether an employer reports payroll, as long as the account remains open.
With respect to the employer’s submission that it was not advised there would be an annual administrative charge and that it relied on incorrect information from the WCB, the panel finds that the written evidence from 2020 clearly advised the employer of the minimum annual premium requirement. On a balance of probabilities, the panel is satisfied that the employer either was, or reasonably should have been, aware that maintaining an active account carried a minimum annual cost.
The panel further notes that when the employer contacted the WCB in May 2025 regarding the charge, Assessment Services correctly advised that the $100.00 represented the minimum assessment for an active account and that closing the account would not eliminate the obligation to pay the amount already assessed. The subsequent letter of May 22, 2025, confirmed both the account closure and the outstanding balance. The panel finds this communication was consistent with the Act and the Regulation.
The WCB reduced the total amount owing by 50% through surplus distribution (applied May 4, 2024), bringing the final balance to $100.00. This reduction reflects the application of WCB policy and administrative practices and does not undermine the validity of the original minimum assessments.
The panel accepts that the employer may have misunderstood the consequences of keeping the account open. However, misunderstanding or lack of awareness does not override the statutory requirement to pay the minimum assessment prescribed by regulation. The panel does not have the authority to waive or cancel assessments that are properly imposed under the Act and Regulations.
On a balance of probabilities, the panel finds that the WCB correctly applied the relevant legislation, regulations, and policies in assessing and maintaining the outstanding balance on the employer’s account. Accordingly, the employer is required to pay the outstanding balance.
The employer’s appeal is denied.
Panel Members
R. Lemieux Howard, Presiding Officer
J. Peterson, Commissioner
M. Kernaghan, Commissioner
Recording Secretary, J. Lee
R. Lemieux Howard - Presiding Officer
(on behalf of the panel)
Signed at Winnipeg this 29th day of January, 2026