Employers in Prince Edward Island who missed the Feb. 28 annual registration renewal deadline with the Workers Compensation Board face arbitrary assessments, interest charges, and late filing penalties on their April 2026 bill.
An arbitrary assessment adds 25 per cent to an employer’s previous year payroll figure when the employer fails to provide an estimate of assessable payroll by the deadline. The WCB uses this inflated figure to calculate premiums for the current year.
How the penalty works
The WCB illustrated the impact using two hypothetical employers, each with $300,000 in assessable payroll in 2025 and a rate of $1.25 per $100.
The employer who filed on time provided a 2026 payroll estimate of $310,000 and faces an assessment of $3,875. The employer who missed the deadline has a 25 per cent arbitrary assessment of $75,000 added to their payroll, bringing the assessed amount to $375,000 and the premium owing to $4,688 — a difference of $813. A late filing penalty of five per cent also applies to the arbitrarily assessed account, and outstanding balances are subject to interest of 1.5 per cent per month.
Additional consequences
Employers with arbitrarily assessed accounts cannot obtain a clearance letter and do not qualify for the semi-annual billing and payment option, which splits assessments of $1,000 or more into two equal payments issued in March and August.
Submitting actual payroll information after the deadline may result in an adjusted assessment, but the WCB says interest and penalties already applied will remain on the account.
Have any questions? Please contact Employer Services by phone at 902-368-580, or by email or by email at safetymatters@wcb.pe.ca.