Claims Management & Other Impacts on WSIB NEER Statement
Are you in danger of paying a WSIB NEER surcharge in 2012? To find out, take a look at the December 2011 NEER statement that you should have received in the middle of February. If you see a number 1-4 in the performance index on the first page, you will be be paying a surcharge in 2012.
Companies can face a WSIB NEER surcharges due to a single lost time claim, or multiple claims. The claim limit for one lost claim in 2011, was $398,000, and it has gone up for 2012. Have you calculated how much a charge to your business could be if you are surcharged? If your performance index is 1-4, it is vital that you find that number out right now so that your business can accrue the required amount, because you will be paying it next December.
The size of your company payroll impacts the amount of potential surcharge. If you are a small-to-midsize organization,it does not take long to reach a maximum surcharge. The company with lower payroll and WSIB premiums will pay less surcharge than a company with a large payroll/premiums, for the same claim/injury.
It is also critical for you to control the amount of lost time on a claim, as longer lost time will dramatically increase the surcharge because of projected future costs. Your limited claim costs will increase after five days of lost time, and then again after four weeks. With suitable modified work programs and good claims management you can control lost time costs; this is even more important with the recent changes in the WSIB approach for return to work programs.
If you are going to be paying a NEER surcharge in 2012, you should consider options to eliminate or reduce your surcharge the next year, and for many years after that. Analysing the causes of injuries in past years and taking action to prevent them in future is the best solution. Next is understanding disability management to control the lost time costs through a modified work program. Another option that many companies have turned to, is to supplement permanent employees with the use of a temporary workforce for added flexibility for seasonal increases and decreases in production. Beyond the benefits that flexibility brings to the company in terms of cash-flow and productivity, it also decreases the amount of WSIB premiums your company is paying. Lower premiums equal a lower potential NEER surcharge, which will always be positive for your company.
Don’t forget that being required to pay a WSIB NEER surcharge can also put you at risk of being Workwell audited. Most companies fail upon first audit. We’ll be writing more about Workwell audits very soon, so be sure to watch out for that!
If you require assistance with your NEER Statement, get in touch with us: Pivotal Staffing Solutions
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