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Effective every January 1st, WorkSafeBC updates compensation tables based on the prior year's rates for income tax, EI and CPP The compensation tables outlines the standard deductions for each $100 increment of gross annualized earnings at $100 rounded increments, up to the statutory maximum.
Net compensation for the first ten weeks is based on a compensation table as follows:
To determine the EI and CPP payable, WorkSafeBC considers the EI deductions and CPP premiums required by law to be deducted from most workers' earnings, up to the statutory annual maximum contributions. WorkSafeBC does not take into consideration the fact that a worker might have fully contributed the maximum allowable EI or CPP. Also, as noted in section 33.8(4) of the Workers Compensation Act, "premiums and contributions are deemed to be payable by all workers." Therefore, the personal circumstances of a worker are not taken into consideration for the purpose of calculating the initial wage rate e.g. if a worker were exempt from paying either CPP or EI, this would not be considered by WorkSafeBC, nor factored into the initial wage rate.
As noted in section 33.8(5) of the Act, in determining the probable federal and provincial income taxes, the Board only applies the following tax credits under the Income Tax Act and the Income Tax Act (Canada):
For the purposes of an initial wage rate, the legislation does not require the Board to take into account a worker's actual tax status for the first 10 weeks of a claim. Therefore, workers with the same gross average earnings, subject to minimum and maximum rules, will have the same deductions for income taxes, EI and CPP.
The compensation table provides allowable deductions for each $100 increment of gross annualized earnings. Therefore, a worker's gross earnings must be converted into annual earnings. For example, if the worker earns $3,000 gross per month at the time of injury, their gross annualized earnings would be $36,000.
The compensation table has a row for each level of annualized gross average earnings, between statutory minimum and maximum, upon which compensation payments may be paid for the first 10 weeks of wage loss. Each increment has calculated amounts for federal and provincial income taxes, CPP contributions, and EI premiums. These amounts are deducted from the gross average earnings to determine the 100% net annual earnings and 90% of net annual earnings. The 90% of net annual earnings is then converted 90% net weekly.
Subject to the special minimum and maximum earnings rules, the 90% net weekly figure is the weekly benefit payment.
Section 29(2) of the Act provides that, where a worker's gross average earnings fall below the statutory minimum, the worker is entitled to 100% of his or her average earnings. With respect to minimum, there is no provision in the legislation to convert the gross average earnings to average net earnings. In effect, a worker would receive 100% of his or her gross average earnings. Please see guidelines relating to minimum compensation and individualized net.
Workers whose gross average earnings are at or below the statutory maximum, and 90% of their average net earnings are above the statutory minimum, are entitled to 90% of their net average earnings.
Where a worker's gross average earnings are above statutory minimum, but 90% of the average net earnings falls below statutory minimum, the worker will receive the statutory minimum.
Gross annual earnings in excess of $75,700 are not insured and not included in benefit calculations.