WCB – Are you Actually Covered

I saw a write-up on WCB coverage from one of my suppliers today and thought that it would be relevant to a lot of self-employed people.

Most common mistake made by self-employed tradesmen and businessmen: paying for WCB coverage they will never qualify for…

Example – Male Carpenter – Framer:

1. Gross income: $130,000  / net taxable income: $30,000
2. He applies for WCB and where application for benefits asks for ‘Gross Payroll’ he puts in $130,000
3. As a result he is billed for the maximum WCB benefit: $4,000 / rate is $6.00 per $100 of benefit
4. Claim: WCB pays 90% of his ‘net-net’ income (ie. net income less all taxes and CPP) which comes to  $2,000 (ie. not $4,000)

Cost-Benefit Analysis:  

1. WCB benefit paid for ($4,000) @ $6.00/100 = $240.00\
2. Actual benefit cost  ($2,000) @ $6.00/100 = $120.00
3. Cost of ‘ghost benefit’ ($2,000) @ $6.00/100  = $120.00

By correcting the Payroll as reported on line to WCB to the actual net taxable income, he can reduce his WCB premiums by $120.00 per month!  Not a bad  savings!

The reality is that you likely need the extra $2000 per month in coverage though if you can’t work due to sickness or injury.  That is where an individual disability plan comes in.  One that tests your income BEFORE you pay your premium to be sure you get the amount you need to keep that roof over your families head.

For more information, contact Travis Strain at 604-308-6030.