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Set up and manage Workers' Compensation (WCB/WSIB)

Employment Hero allows you to configure and comply with the Workers' Compensation Benefit (WCB) or Workplace Safety and Insurance Board (WSIB) standards in your province or territory.

Set up your workers' compensation rates in Employment Hero, assign employees to the applicable rates, and run payroll as usual. When it comes time to report and pay your premiums, run a Workers' Compensation Report to find your Total Workers' Comp Earnings, Total Workers' Comp Subject Earnings, Premium Calculation, and Excess Earnings.

Setting Up Workers' Compensation Mid-Year

It is essential to set up Workers' Compensation before running payroll so that Employment Hero can calculate premiums when you run your first payroll.

Employment Hero will retroactively calculate Workers' Compensation premiums back to January 1st of the current year. There is no need to adjust past payrolls.

New Year, New Rates

Most WCB/WSIB rates change every calendar year. Add the new rate in Employment Hero before running your first payroll with a cheque date in a new calendar year.

  • Check your local government website for the most current rates in your province or territory.

How to Set Up Workers' Compensation

Step 1 — Before opening Employment Hero
  1. Gather a list of any employees exempt from Workers' Compensation coverage

    Employment Hero cannot identify exempt employees. If you are unsure, consult your legal team or the workers' compensation body in your province.
  2. Gather your Workers' Compensation documentation. You will need to:
    • Identify all provinces in which your business has a workers' compensation obligation
    • For each province, identify all rates and rate classes your business is subject to
    • For each province, identify which employees are covered under which rate
  3. Review what earnings Employment Hero considers assessable in your province

    Every default earning type in Employment Hero Payroll is defined as either assessable (subject to workers' compensation premiums) or not assessable. Employment Hero uses the province selected to apply the maximum assessable earnings threshold set by the jurisdiction.

  4. Review any custom earnings or benefits

    • If the benefit is set to be subject to Income Tax: Employment Hero will define it as assessable (subject to workers' compensation premiums).
    • If the benefit is not set to be subject to Income Tax: It will be defined as not assessable.

    Important

    If these defaults are incorrect for your custom earnings or benefits, contact support before running your first payroll.

Step 2 — Set up Workers' Compensation in Employment Hero

These steps are in the recommended order, but you can complete them in whatever order suits you best.

  1. Mark all exempt employees as exempt
    1. In People, click Employee List and select the exempt employee.
    2. In their Employee Profile, scroll to the Pay & compensation section and click the Taxes, credits & exemptions tab.
    3. Scroll to Taxes & exemptions, click the pencil icon and toggle on the Workers' compensation exempt field.
    4. Click Save.
    5. Repeat for each exempt employee.
  2. Create a Workers' Compensation rate for every rate and province combination your business is subject to

    1. Go to Settings → Payroll card → Workers' Compensation.
    2. Click + Create rate.
    3. Enter the Rate Name, Applicable year, Province, and Rate.
      • Rate name: free text, editable later
      • Applicable year: not editable after saving
      • Applicable province: not editable after saving
      • Rate: not editable after saving
    4. Click Create rate to save.

    How to enter your rate correctly

    Employment Hero requires the rate as a numeric value only. Do not include symbols, letters, or formulas — Employment Hero handles the calculations automatically.

    Example rateEnter as
    0.19%0.19
    $1.601.60
    0.22% or 22 cents/$1000.22
  3. Assign employees to the Workers' Compensation rate they are subject to
    1. Click + Assign Employees. Select all employees or use the search bar to find specific employees.
    2. Repeat for any additional rates until all assignments are complete.
    3. If you created a rate without assigning employees at the time, go to Settings → Payroll card → Workers' Compensation → click the three dots on the rate line → Edit → follow the steps above.

New employees and province changes

New hires: Assign new employees to the correct rate manually before their first pay cycle.

Province changes: Unlink the employee from their current rate first — all historical data stays in the system. Then assign them to the new rate. All future earnings will be based on the new rate.

Step 3 — Run your first payroll to activate Workers' Compensation

Important

Review all setup steps before running payroll. Once activated, Employment Hero performs a retroactive Workers' Compensation calculation back to January 1st. This calculation cannot be undone.

When you are satisfied with your setup, go to Payroll and complete your first pay run. Employment Hero will automatically run the retroactive calculation, which you can view in your Payroll Reports.

Step 4 — Review your retroactive Workers' Compensation calculation
  1. Go to ReportingPayroll.
  2. Select the Workers' Compensation Report to review your Total Workers' Comp Earnings, Subject Earnings, Premium Calculation, and Excess Earnings.

Made an error?

If you discover an error caused by incorrect setup, contact our support team immediately before running further payrolls.

That's it! You've completed your Workers' Compensation setup. If you have any questions, feel free to reach out to support.

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