Do top-up benefits affect WCB benefits?
Benefits in addition to workers’ compensation benefits paid to a worker as a direct result of a workplace injury will either be deducted from the worker’s wage loss benefits or will be considered earnings of the worker after the injury. It depends on whether or not the benefits are taxable. It is important to ensure that the combination of benefits does not add up to more than 100% of the worker’s net actual loss of earnings.
How will this affect the collective agreement I have with my employees?
The top-up will not be deducted from the worker’s compensation benefits as long as the top-up does not provide the worker with more than 100% of his/her net actual loss of earnings.
Why should I offer top-up benefits to my employees when the amount is just deducted from their WCB benefits?
It is important to note that collateral benefits are deducted from the worker’s compensation benefits only when the collateral benefits, plus wage loss benefits add up to more than 100% of the worker’s net actual loss of earnings.