Administration of Out-of-Province Operations Policy 23-305 | Effective Date: April 6, 2017

Purpose

The purpose of this policy is to provide guidelines to staff when dealing with employers having out-of-province operations.

Scope

This policy applies to employers who have operations outside the province of New Brunswick.

Statements

1.0 General

Employers are classified based on their primary business activity to determine annual assessments. Administrative staff are considered to be supportive of the employer’s main operation and are assessed at the same rate as the operation payrolls.

However, some New Brunswick employers have significant operations located outside the province. In certain cases, such employers have staff in New Brunswick to administer out-of-province operations. Employers may be entitled to lower assessment premiums on that portion of payroll determined by WorkSafeNB to be attributable to out-of-province operations.

2.0 Entitlement

An employer who submits an application may be considered for a separate rate for "administration of out-of-province operations" if the following criteria is present:

  • More than 30% of the employer’s total payroll is payable to operations located outside New Brunswick;
  • The employer satisfies WorkSafeNB that a significant portion of the administrative workers located in New Brunswick are directly involved in the operations located outside the Province; and/or
  • Separate and distinct payroll records are maintained to segregate administrative and operations workers, by province/country.

WorkSafeNB will apply a mathematical formula to apportion administrative payrolls between:

  • Those payrolls deemed by WorkSafeNB necessary to run New Brunswick operations; and
  • Those payrolls deemed by WorkSafeNB necessary to run out-of-province operations.

The portion of payrolls deemed by WorkSafeNB necessary to run out-of-province operations may be allocated to a separate "out-of-province administration" rate.

2.1 Exception

An employer will not be granted a separate out-of-province administration rate if the portion of administrative payrolls allocated to this special rate is less than 10% of the employer’s total New Brunswick administrative payrolls.

"Administrative payrolls" for the purpose of this policy usually include:

  • Persons involved in managing the affairs of the company;
  • Clerical functions;
  • Accounting (billing, collection, purchasing, payroll);
  • Legal;
  • Information technology;
  • Marketing and telemarketing;
  • Customer service; and
  • Sales management.

WorkSafeNB makes the final allocation of occupations or company departments as either administrative or operations payrolls. The uniqueness of certain industries will be taken into account in determining the administrative occupations that are normally found in such industries.

2.2 Effective Date

The effective date for the separate "out-of-province administration" classification will be the date of application by the employer.

2.3 Allocation of Costs

For cost allocation purposes, claims for operational workers will be allocated to the appropriate industry rate grouping. Claims for administrative workers will be allocated to the predominant rate group.

 

Appeals Tribunal – means the Workers’ Compensation Appeals Tribunal established under the WHSCC & WCAT Act.

WorkSafeNB – means the Workplace Health, Safety and Compensation Commission or "the Commission" as defined by the WHSCC & WCAT Act.

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