Who funds the workers' compensation plan?

• A. Employees
• B. Employers
• C. Government
• D. Both employees and employers

Answer: (B)

Funding for workers’ compensation comes from employer premiums paid to the provincial, territorial, or federal workers’ compensation board. It’s a no-fault insurance system, so injured workers receive benefits regardless of fault, and the costs are borne by employers who are assigned premiums based on their payroll and risk profile. Employees do not directly pay for this insurance, and while government sets the rules and administers the program, it is not funded from general tax revenue. In federal workplaces, the same principle applies under the appropriate federal compensation system.