Resolutions

Making WCB Claims Subordinate to Unpaid Municipal Taxes

Year: 2006

Resolution

Be it resolved that SUMA request that Section 156 of The Workers’ Compensation Act, 1979 be amended so that the municipal portion of taxes would no longer be subordinate to Workers’ Compensation assessments.

Provincial Response

Considering resolution #11, you have requested amendments to section 156 of The Workers' Compensation Act, 1979, which legislates the collection of assessment through municipal tax collectors. As you may be aware, section 162 of the Act requires the appointment of a committee of review to review and report on all matters concerning this Act at least once every four years. I am pleased to inform you that the next review will begin early in the new fiscal year. I recommend that SUMA forward its concerns regarding section 156 of the Workers' Compensation Act, 1979 to the Committee of Review when they announce their request for written submissions. - Some of your members may have the impression their responsibilities go beyond executing a tax certificate on behalf of the WCB. This is not so. Section 145 of The Workers' Compensation Act does not oblige municipalities to do the following: - Initiate collection procedures on behalf of WCB against the defaulting employer. - Be responsible to the WCB for any defaulted employer assessments. - Make up any shortfall arising from partial premium recovery by the WCB. To summarize, a municipality's responsibility is limited to: 1. Executing a tax certificate on behalf of the WCB. 2. Placing the defaulted premium on the municipal tax roll; and 3. Remitting to the WCB any amount eventually recovered from the employer. Section 145, rather than burdening municipalities, helps the WCB maintain a fair and competitive premium structure for the employers of Saskatchewan

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