Understanding the basics about the WSIB’s NEER financial system is a challenge for many employers. With limited time available to prepare for the upcoming implementation of the new Rate Framework, which will replace NEER, there are a few basic concepts you should understand regarding the current program.
Here are a few quick facts:
What are the different WSIB financial plans?
The WSIB has 3 main programs for determining worker compensation claim costs:
- NEER (New Experimental Experience Rating) covers the majority of Ontario businesses with premiums in excess of $25,000 annually
- CAD-7 covers employers in the construction industry with premiums in excess of $25,000
- MAP (Merit Adjusted Premium) program applies to employers with between $1,000 and $25,000 in average premiums before adjustments. Employers with premiums less than $1,000 are not experience rated.
What is NEER?
- NEER is a cost-driven plan, linked to prevention and return-to-work efforts
- Retrospective plan that redistributes premiums within each rate group (industry type) via refunds and surcharges
Who is part of NEER?
- Applies to employers paying more than $25,000 in WSIB premiums, are in a non-construction industry, are a Schedule 1 employer, and have been open for at least one full year
What are the time periods NEER measures?
- WSIB measures your company’s claim performance for the period of January 1 – December 31 for each year in review
- Employers are liable for costs related to the most current 4 year period. For example, on your September 2017 NEER statement, the WSIB will review claims for the years 2013-2016
- Once a claim has dropped out of your 4 year NEER window, your organization is no longer liable for costs incurred on that claim
How does NEER work?
- Employers pay premiums based on every $100 of payroll that vary for each employer based upon various factors including historical accident costs and average costs for your rate group (industry type)
- WSIB estimates “Expected Costs” of workplace injury claims for your organization
- Actual claim costs are charged to the accident year, not charged to the year in which payment is made
- If your company had actual claim costs for the year that were lower than the “Expected Costs,” then your company will receive a refund. If you exceeded “Expected Costs,” you can expect to be levied an additional surcharge.
- Refunds or surcharges are levied based on your September NEER statements
What reports will I be receiving from the WSIB?
- Monthly claim cost statements capture all claim costs for the life of a claim, even after they have dropped off your 4 year NEER window.
- Quarterly NEER statements, which include both a Firm Summary Statement and Claim Cost Statement, for the periods ending December, March, and June each year give you an estimate on what your yearend costs will be on your September statement.
- Your September NEER statement calculates your final refund or surcharge amount for the 4 years under review.
Next steps
Do you have additional questions about your WSIB claims? You can register for Introduction to NEER Workshop on November 29th in Cambridge.
Also, as experts in the field, we can review and analyze your NEER statement. For more information or questions regarding NEER, please communicate with us.
Certified HR consultants and medical professionals at Clear Path Employer Services
Clear Path Employer Services is a team of certified HR consultants and medical professionals dedicated to resolving the human resources and claims management challenges facing businesses across Ontario. The company was founded in 2003 by Anna Aceto-Guerin, a Certified Human Resources Professional (CHRP) specializing in WSIB claims management and NEER cost containment, with a focus on return-to-work programs and acquiring SIEF cost relief for employers.
Latest posts by Clear Path Employer Services (see all)
- The basics of the WSIB’s NEER system - September 29, 2017
- Summarizing WSIB’s proposed Rate Framework, part 3 - August 25, 2017
- Summarizing WSIB’s proposed Rate Framework, part 2 - July 28, 2017
