Mandatory WSIB Coverage – Mona Tessier
Business owners in the construction industry need to be aware of the new expanded compulsory WSIB coverage. Only activities listed in Class G of Schedule 1 of the Workplace Safety and Insurance Act require the compulsory coverage.
Most affected by the new rules are executives and independent operators who were previously able to opt out of WSIB coverage. All executives performing construction work must now be covered. An exemption is available for one executive per company but only if that executive does not perform any construction work.
It’s important to be aware of the separate construction rate group available for partners of a partnership and executive officers who do not perform any construction work. The WSIB premium for this rate group is $0.21 per $100 of salary. An application must be submitted in order to benefit from this preferential rate.
Furthermore, an exemption from the compulsory coverage is available for some workers who perform home renovation work. In order to qualify for the exemption, the following conditions apply:
- the work must be in respect of an “existing private residence”
- the worker (contractor) performing the work must be an independent operator, sole proprietor, partner, or an executive officer and must be engaged exclusively in home renovation work.
- the person who directly retains the contractor or a member of that person’s family must be a current or future occupant of the “existing private residence”.
Those affected by the changes will need to register with WSIB within 10 days after becoming a person who is subject to the new requirements. An amnesty period has been announced applicable to the year 2013. The new rules will still apply but charges will not be laid for failure to comply with the new requirements.
For more information, check out the WSIB website or by contacting Mona Tessier at [email protected].
Mona Tessier, CPA, CA, CA.IT