For commission-based workers in Ontario, WSIB calculates your Loss of Earnings (LOE) initially based on a 4-week short-term average, and recalculates it after 12 weeks by looking at your income over a 12-month period to smooth out seasonal highs and lows. If approved, you will receive 85% of your net average earnings, minus any valid business expenses declared to the CRA.
Working in sales can be incredibly lucrative, but it also means your pay cheque is rarely the same from one month to the next. Whether you are a real estate agent in Hamilton, a car salesperson in London, or a corporate recruiter in Toronto, your income is directly tied to the deals you close. When a workplace injury suddenly stops your ability to sell, the financial impact can be devastating and immediate.
For commission-based professionals, the Workplace Safety and Insurance Board (WSIB) uses a specialized approach to calculate pre-injury earnings. 📊 Because a short-term snapshot might unfairly capture a “slow season” or an unusually massive bonus, the board relies on historical data and tax records to establish a fair and equitable rate. Here is exactly how that process works.
Step-by-Step Process for Commission Workers in Ontario
Filing a WSIB claim when your income fluctuates wildly requires excellent record-keeping and a proactive approach. Most applicants in this province find that gathering their financial documents early is the key to preventing delays in their compensation.
Step 1: Get Medical Help and Inform Your Brokerage/Employer
Never delay medical treatment to finish a shift or close a deal. 🏥 Visit an emergency room or a local medical clinic immediately and ensure the attending physician knows you were injured while performing work duties. They will complete a Form 8 for the WSIB. You must also notify your employer, brokerage, or agency so they can fulfil their legal obligation to report the injury.
Step 2: Gather Your Tax Documents and Commission Statements
Unlike salaried workers who just need a few recent pay stubs, you will need comprehensive proof of your historical earnings. Gather your Canada Revenue Agency (CRA) Notice of Assessment (NOA), your T4 slips, and any detailed commission statements from your employer for the past 12 months. If you claim business expenses (like travelling or client dinners), gather those records too.
Step 3: Submit Form 6 to the WSIB
You need to officially document your side of the story by filing a Form 6. 📝 You can do this digitally on the WSIB portal. In the employment section, clearly indicate that your compensation is primarily or entirely commission-based. This specific detail ensures your file is routed to an adjudicator experienced in handling fluctuating income claims.
Step 4: The Short-Term vs. Long-Term Earnings Calculation
WSIB does not use a long-term average right away. For the first 12 weeks of your claim, your benefits are based on your short-term average earnings, which for commission workers is determined by averaging your income over the 4 consecutive weeks immediately prior to your injury. From the 13th week onward, WSIB automatically transitions your claim to a long-term average. Under OPM Document 18-02-03, commission-based workers in permanent employment have their long-term average earnings recalculated based on their actual earnings over the 12 months prior to the injury. They will take your total gross commissions over this 12-month period, subtract any allowable business expenses you claimed on your taxes, and apply standard statutory deductions to determine your final net average earnings.
Step 5: Reviewing the Calculation and Navigating Expenses
Once WSIB issues their decision letter, review the math carefully. 🔍 Often, disputes arise over business expenses. If you operate as an employee but write off significant expenses on your CRA return to lower your tax burden, WSIB will also deduct those expenses before calculating your 85% LOE benefit. If you disagree with their final numbers, you have the right to request a formal review.
| Income Structure | WSIB Calculation Approach | Key Documents Needed |
|---|---|---|
| Fixed Salary | Base rate of pay at the time of injury. | Recent pay cheques, simple timesheets. |
| 100% Commission | Averaged over 4 weeks prior to injury for short-term; recalculated over the 12 months prior to injury for long-term. | CRA NOA, T4 slips, detailed commission ledgers for 12 months. |
How Much Does it Cost in Ontario?
Pursuing a WSIB claim should not put you in debt. Here is a realistic look at the costs associated with establishing a commission-based WSIB claim:
- Filing Fees: $0 CAD. Accessing the WSIB system is completely free for all workers in Ontario.
- Accountant Fees: Because your earnings calculation relies heavily on CRA documents, you might need to pay your accountant $150 to $400 CAD to quickly prepare specialized income statements or reconcile expense deductions for the board.
- Law Firm Representation: If your employer disputes your employment status (claiming you are an independent contractor rather than a covered worker), you may need a lawyer. Most charge a contingency fee of 15% to 30% only if they win your retroactive benefits.
How Long Does the Process Take?
Because commission calculations require manual auditing, they can take slightly longer than standard claims. 🕘 Here is what you can generally expect:
- Initial Claim Approval: If liability is clear, the basic claim is usually approved within 2 to 14 days.
- Earnings Calculation Review: Auditing 12 months of commission statements and CRA NOAs can take an adjudicator an additional 3 to 6 weeks.
- Receiving Funds: Once the exact LOE rate is locked in, retroactive payments are typically deposited directly into your bank account within 7 to 10 business days.
Frequently Asked Questions (FAQ)
Does WSIB deduct my business expenses from my commission?
Yes. If you deduct business expenses (like vehicle mileage or marketing costs) on your CRA tax return to lower your taxable income, WSIB will generally subtract those same expenses to determine your true net earnings.
What if I was injured during my busiest sales month?
WSIB aims for fairness by averaging. While they will not base your entire benefit solely on one record-breaking month, that high-income month will significantly pull up your 12-month overall average.
What if I just started my commission job and have no history?
If you have less than 12 months of history at the job, WSIB will typically look at your earnings during the short time you were employed and may compare it to the average earnings of a similar worker at your company.
Can I receive WSIB if I am technically an independent contractor?
It depends. WSIB uses an organizational test. Even if your boss calls you a contractor, WSIB might classify you as a covered “worker” based on how much control the company has over your daily labour and sales targets.
Will WSIB cover my lost annual bonus?
Generally, regular performance bonuses that are a standard part of your compensation package are factored into your gross annual earnings calculation when determining your long-term Loss of Earnings rate.
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