347
Suppose an employee earns $4,500 per month, and the business is assigned the lowest rate of $0.21
per $100 of gross pay.The amount the business must pay to workers’ compensation is
$4,500 × $0.21
100 = $9.45
If instead the business must pay the highest rate of $18.31 per $100 of gross payroll, the amount
of workers’ compensation to pay is
$4,500 x $18.31
100 = $823.95
This amount must be accumulated by the business every pay period and remitted to the provincial
workers’ compensation board. If at any time during the year the employee reaches the maximum
insurable earnings ceiling, workers’ compensation will no longer be paid for the remainder of the
year.
Chapter 11 Appendix
Payroll
