The estimated average assessment rate is established to ensure the workers’ compensation and occupational health and safety systems will be sufficiently funded in the upcoming year. The rate represents the average amount of money that must be collected from employers for every $100 of estimated total assessable payroll in the upcoming year.
After the end of each fiscal year the actual average assessment rate is calculated and published. This figure represents the actual amount of premiums that were collected, on average, for every $100 of actual assessable payroll. A number of factors, such as industry mix and changes in assessable payroll, will make the actual average assessment rate different from the estimated rate. This difference is more pronounced when there is significant change in economic activity in Yukon.
The average assessment rate is sometimes also referred to as the “target rate,” the “average premium rate” or the “average provisional rate.”