Nearly $5 billion in surplus funds are sitting in workers’ compensation boards (WCBs) across six Canadian provinces and territories, a situation that the Canadian Federation of Independent Business (CFIB) says could provide much-needed financial relief to small businesses struggling with rising costs and dwindling consumer demand.
The CFIB’s latest research highlights that WCBs in British Columbia, Manitoba, Ontario, New Brunswick, Prince Edward Island, and Yukon have exceeded their funding targets, with Manitoba’s board notably overfunded by 160% against its target of 130%.
These funds, according to CFIB, should be returned to small businesses to help them manage financial challenges, such as paying down debt, investing in health and safety measures, and offsetting the overall cost of doing business.
“Little has changed since our report last year,” said Marvin Cruz, CFIB’s director of research. “The same five boards, now joined by Ontario, are holding onto large surpluses that they don’t need, while small businesses face significant financial pressures.” Cruz emphasized that these boards are financially robust enough to issue rebates without jeopardizing worker payouts.
The CFIB estimates that if the excess funds were returned, a small business with five employees could receive a rebate ranging from $1,745 in Ontario to $5,360 in New Brunswick. Despite the significant surplus, nine out of 12 WCBs have established policies to return these excess funds to employers. Manitoba, for example, returned $118 million in 2024, with plans to continue issuing rebates until its funding ratio aligns with the target of 130%.
Ontario stands out as the only province with legislation mandating the return of surplus WCB funds to employers, requiring rebates when the Workplace Safety and Insurance Board’s (WSIB) funding level reaches 125% or more. In 2022, Ontario’s WSIB distributed $1.2 billion to nearly 300,000 eligible businesses under this legislation.
CFIB is calling on other provinces to follow Ontario’s example by legislating the return of surplus funds. “We also urge all governments with boards exceeding their funding targets to issue rebates now and regularly in the future,” said Julie Kwiecinski, CFIB’s director of provincial affairs for Ontario.
To promote fairness and transparency, CFIB recommends that provincial and territorial governments return surplus funds to employers or lower premiums when funding ratios exceed targets, with a preference for rebates. The organization also advocates for mandatory distribution policies to ensure surplus funds are returned consistently and for enhanced transparency by setting public release dates for board funding levels.
Kwiecinski pointed out that workers’ compensation premiums are considered one of the most burdensome taxes by employers because they are profit-insensitive. “WCBs are directly funded by employers, so we’re just asking governments to return surplus money that belongs to businesses that pay into WCBs,” she said.
The CFIB represents 97,000 small- and medium-sized businesses across Canada and focuses on advocating for policies that improve business conditions for its members.
