If the WSIB miscalculates your pre-injury earnings, your Loss of Earnings (LOE) benefits will be permanently underpaid. You generally have six months to appeal this math error by submitting an Intent to Object form along with accurate T4s and pay stubs. For 2026, the maximum insurable earnings ceiling in Ontario is set at $121,700 CAD.
Sustaining a workplace injury in Ontario is stressful enough without having to worry about your weekly benefit cheques being lower than they should be. When you are approved for a Loss of Earnings (LOE) claim through the Workplace Safety and Insurance Board (WSIB), your payments are calculated based on 85% of your net pre-injury earnings. Unfortunately, adjudicators can easily make mistakes when calculating your average wages, especially if your income fluctuates.
A simple math error by the WSIB can cost you thousands of dollars over the lifespan of your claim. 📍 Whether you work on a construction site in Toronto, a manufacturing plant in Hamilton, or a hospital in Ottawa, the way your employer reports your income on their Form 7 can sometimes be misleading. It is crucial to double-check the WSIB’s math immediately. If you notice a discrepancy, an experienced Ontario workers’ compensation lawyer can help you gather the right financial evidence to set the record straight.
Step-by-Step Process for Fixing Earnings Calculations in Ontario
The WSIB uses different formulas depending on how long you have been off work. Initially, they look at your short-term earnings (usually the last four weeks). If you remain off work beyond 12 weeks, they must recalculate your long-term average over the past one to two years. Here is how to fix an error during this process.
Step 1: Review Your WSIB Decision Letter Carefully
When your claim is approved, the WSIB will send you an initial decision letter detailing your exact pre-injury earnings and your resulting LOE rate. 📄 You must read this carefully. Compare the gross amount they list against your actual recent pay stubs. If the WSIB missed your regular overtime, shift premiums, or vacation pay, the calculation is wrong.
Step 2: Gather Your Financial Evidence
You cannot simply call the WSIB and say they made a mistake; you must prove it with paper evidence. Collect your last several pay stubs leading up to the accident, your most recent T4 tax slips, and your employment contract. If you held two jobs at the time of your accident (concurrent employment), you must gather the financial records for both jobs, as WSIB must combine them up to the annual ceiling.
Step 3: Ask the Adjudicator for a Reconsideration
Before launching a formal appeal, you can often solve simple math errors by contacting your WSIB Case Manager or Adjudicator directly. ☎️ Send them a polite letter alongside your pay stubs explaining why the initial Form 7 submitted by your employer did not accurately reflect your normal earnings.
Step 4: Submit an Intent to Object (ITO) Form
If the Case Manager refuses to change the rate, you must file a formal Intent to Object (ITO) form. You have a strict time limit of six months from the date of the decision letter to submit this form. Missing this deadline means you might be permanently stuck with the lower LOE rate.
Step 5: Proceed to the Appeals Resolution Officer (ARO)
Once your ITO is processed, your file is sent to the Appeals Branch. An Appeals Resolution Officer (ARO) will review your T4s and the employer’s payroll records. ⚔️ Your WSIB lawyer will submit a written submission explaining exactly how the pre-injury earnings should be calculated under the Workplace Safety and Insurance Act.
How Much Does an Appeal Cost in Ontario?
Filing an appeal with the WSIB does not require you to pay any government filing fees. However, securing legal representation is highly recommended. As of May 2026, here are the typical costs:
| Expense Item | Estimated Cost (CAD) |
|---|---|
| WSIB Filing Fees | $0 (The appeals process is free to access). |
| WSIB Lawyer or Paralegal Fees | Usually a contingency fee of 15% to 30% of the retroactive back-pay they win for you. You pay nothing if you lose. |
| Obtaining Payroll Records | Typically free from your employer, but accountants may charge a small administrative fee. |
How Long Does the Process Take?
Correcting an earnings mistake can take patience. ⏰ A simple reconsideration by your Adjudicator might take 2 to 4 weeks. However, if you must proceed to an ARO hearing, you could be waiting 3 to 6 months for a decision. If the ARO denies your claim and you must appeal to the Workplace Safety and Insurance Appeals Tribunal (WSIAT), the wait time easily stretches to 12 to 18 months.
Frequently Asked Questions (FAQ)
Does WSIB include my overtime pay in the calculation?
Yes, but only if the overtime was regular and a normal part of your employment. If you only worked one hour of overtime in the entire year, it likely will not heavily impact your long-term average. If overtime was mandatory or consistent, it must be included.
What happens if I had a second job when I got hurt?
This is called concurrent employment. The WSIB must calculate your LOE based on the combined earnings of all your jobs at the time of the accident, up to the annual maximum ceiling of $121,700 CAD for 2026.
How are pre-injury earnings calculated for self-employed contractors?
If you purchased optional WSIB insurance as an independent operator, your earnings are typically based on the amount of coverage you requested and paid premiums for, or your actual net business income proven by your CRA tax assessments.
Are WSIB LOE benefits taxable in Canada?
WSIB benefits are not taxable income. You do not pay income tax on your LOE payments. However, you still must report the benefits on your annual tax return (using the T5007 slip provided by WSIB), as it affects other government credits.
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