WSIB freezing premiums to give break to small businesses: President

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Workplace insurance costs will not rise for businesses in 2023 because the Ontario government agency that runs the program is freezing its premiums, president Jeffery Lang said.

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The Workplace Safety and Insurance Board will announce Thursday its average rates will remain the same. The rates were reduced in 2021.

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Businesses emerging from the pandemic have been hit with inflation, labor shortages, slowing growth and a demand to pay higher wages as well as supply chain issues, and it’s about time they got a break, Lang said.

“We are very happy and proud to announce that we will hold the average premium rate steady for 2023. There are some real challenges out there for small businesses,” he said.

“There is talk of a downturn and we don’t want to put any more pressure on businesses.”

Ontario now has the lowest WSIB rates in 20 years, Lang said

Businesses pay $1.30 for every $100 of insurable earnings. So, a business with $500,000 in payroll will pay about $6,500 annually.

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“We think that every little bit helps,” Lang said.

WSIB reduced premiums by seven per cent in 2021 to the $1.30 level.

Of the 330,000 businesses in Ontario, about 80 per cent are small businesses employing about 5.6 million insured workers, Lang said.

News of the average rate freeze will be welcomed in the face of rising costs and worries over slowing economic growth, said Krista Duever, vice-president of public affairs at the London Chamber of Commerce.

“It is good news for small businesses, it gives them certainty going into the next year,” he said.

“A lot of small businesses are still in survival mode, facing inflationary pressure and supply chain issues and labor shortages, but there is optimism too. We seem to be coming out of the pandemic. Business owners are starting to feel like they can plan for the future and that was difficult for the last few years.”

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WSIB in April announced it was giving $1.2 billion in what was surplus cash back to businesses. Legislation had restricted the agency from refunding the money, but that legislation had been changed, Lang said.

”The money is from employers, it is their money. We did not have the ability to give it back to them,” he said. “They are our customers; it is their money. It is better off in their hands.”

It is the first rebate offered in WSIB history.

In addition, WSIB is increasing an incentive for employers to train workers in workplace safety in a move to try to reduce workplace accidents and injuries, Lang said. Businesses will get the chance to receive premium rebates of up to 100 per cent, meaning they can pay nothing for WSIB coverage.

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