Effective January 1, 2024, WorkSafeBC has changed its assessable earnings reporting practices.
Before this change, certain benefits were excluded from the calculation of assessable earnings. However, under the updated Assessment Practice Directive 5-245-2 (A), these benefits will now be incorporated, encompassing but not limited to:
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Accidental death and dismemberment (AD&D)
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Company-owned/leased vehicle
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Group term insurance
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Interest-free loans
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Parking
Below is the list of exclusions:
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Directors' fees, unless the director holds a position as either an employee or an executive within the corporation
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Executor's and administrator's fees
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Non-taxable gifts and awards
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Salary deferral (Payments made during the period of the leave)
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Severance or termination pay, pay in lieu of notice, salary continuance (Payment made in the following year the employee left their employment), unused sick credits
The assessable earnings will be determined using the amounts generally reported in boxes 14 and 71 of the T4 slip. This marks a shift from the previous practice, allowing the inclusion of certain benefits.
Employers must:
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Review their earning codes
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Refer to the specific inclusions and exclusions
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Ensure that boxes 14 and 71 are correctly mapped with the workers' compensation-assessable earnings.