Application 6: Audits

1. What records are employers required to maintain?

Employers must maintain detailed and accurate records of all earnings paid to workers and any other information the WCB may require.  These include all ledgers, journals and other means of recording wages and other insurable amounts paid to all workers, including contractors and subcontractors.  Where applicable, these should provide a breakdown of labour, equipment, and materials used.

When employers have workers in two or more businesses, they are required to keep separate records for each business (see Policy 07-01, Classification).

All records are subject to periodic review by the WCB.

2. What is a premium audit?

A premium audit is a formal examination and verification of an employer's operations and financial records.  Audits are conducted by the WCB to:

• ensure employers pay premiums for the correct industry classification(s)
• ensure employers report the correct insurable earnings to the WCB, and
• verify an injured worker's insurable earnings.

3. When are employers required to provide records for audit?

Employers are required to provide all records, documents and information pertaining to the operation of their business when requested to do so by the WCB.  All information obtained from employer records is held in the strictest confidence (see Policy 01-02, Disclosure).

The WCB may take possession of, examine, remove, take extracts from, or obtain reproduced copies of the records, documents, and other pertinent information.

4. What are the consequences of failing to comply with a request to provide information?

When an employer does not make these records available, the WCB may issue an Order to produce the records for the WCB's examination.

The WCB may apply to the Court of Queen's Bench for a Compliance Order compelling the employer to produce records for the WCB's examination at a specific time and place.  Failure to obey the Order may subject the employer to contempt of court proceedings.  In addition, it is itself an offence under s.19 of the Act to hinder or obstruct any investigation of an employer's affairs.

5. When is this policy application effective?

This policy application (Application 6 - Audits) is effective June 1, 1998 except when noted otherwise in a specific policy section(s).