Pilot Project on WCB Payments

At the request of Labour Minister Russell MacKinnon, the Workers' Compensation Board (WCB) is stepping up efforts to improve the way Nova Scotia businesses pay their workers' compensation bills. A pilot project to test a new system for periodic payment of premiums will be up and running by next year, announced David Stuewe, chief executive officer of the WCB.

In recent meetings with the WCB, the labour minister encouraged action on this initiative. "We must always work to improve the system on all fronts," said Mr. MacKinnon. "Improving the system of payments will help small and mid-sized businesses manage their expenses. It will mean benefits for the entire system."

Currently, employers must pay WCB premiums upfront for the full business year. Moving to periodic payments would involve monthly or quarterly payment of premiums. The pilot project will test the logistics of moving to a periodic payment system. About 100 employers from across the province will take part in the pilot.

The method for calculating premiums is also targeted for change. Employers must now predict their payroll for the upcoming year and pay their premium based on that figure. If payroll exceeds predictions, employers must pay the difference plus a penalty. The new system will base payments on actual payroll amounts, similar to the Revenue Canada payment system.

The new system will also be tied in with the Nova Scotia Business Registry project, which makes it easier for businesses to deal with government by streamlining processes and reducing red tape and duplication.

"We are committed to building a new, fairer, more flexible system for payment of premiums," said Mr. Stuewe. "Our stakeholders have indicated that this is important, and we will work with them to make meaningful improvements."

The WCB has been working on this initiative with key business stakeholders over the past year.

The minister noted the importance of working with all stakeholders on a wide range of workers' compensation issues. "We are committed to finding solutions that treat injured workers with fairness and respect," said the minister. "We are committed to a stable compensation system with secure benefits for workers and affordable rates for employers. We are serious about delivering lasting solutions."