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In a few months Ontario employers will enter the brave new world of the Rate Framework.  This comprehensive restructuring of how the WSIB will assess employer premiums will affect employers in many ways.

Next year will be the last time that employers will get rebates and surcharges (based on the 2019 bulk issue).  After that, these old friends will disappear with NEER and CAD-7.  A new prospective experience rating model will take their place that will apply to all employers regardless of sector.  Each employer will get its net premium set for the beginning of the year on a go forward basis.

Most employers will also be in only one of 34 rate groups or, as they will be known, classes.  Most employers will have received a letter from the WSIB last year letting them know what their proposed class will be.  There will be a limited opportunity for some employers to have two or more classes based on a complex WSIB policy which is available on the WSIB’s website.

One of the most complex changes relates to how the WSIB determines if two or more employers are associated.  The consequences are significant because all associated companies are treated as one employer for premium and experience calculation purposes.

Also new for 2020 is a six-year experience rating window and a 4-year retroactive premium adjustment period.

The OEA will be conducting webinars to help employers better understand the new funding review regime, and our staff will be available to answer your questions.