Executive officers in a corporation in construction with workers

Executive officers in a corporation in construction now must be registered with the WSIB, their earnings must reported, and premiums paid on their earnings.

The WSIB considers you to be an executive officer in a corporation in construction with workers if:

  • You are the individual, or are a member of a team, that controls the direction of the entire organization or key functions of the organization (e.g.: Operations or Finance).
  • Your corporation employs workers.
  • Your corporation performs Class G construction work.

Please Note:

  • A title alone (like President or Vice President) does not automatically make you an executive officer for WSIB purposes. You must be empowered to act on behalf of the organization.
  • The WSIB may ask to review the details of your role, responsibilities and authority within your organization to help determine whether you should be considered an executive officer for coverage purposes.

Under the new rules, your corporation is a ‘deemed employer’ and the executive officers are ‘deemed workers.’ This means that you will be covered by the WSIB as a worker and your corporation will have to report your earnings and pay premiums to the WSIB as the employer.

If you’re not sure how you’re defined under Mandatory Coverage, use the coverage tool on the home page to find out.

Exemptions

If the construction work that everyone in your organization does is strictly home renovation, and your organization is always hired and paid by the occupant or a member of their family, you (the executive officers) are exempt. Please see our Home Renovator page for more information.

There is an exemption available to one executive officer in your organization. If you or one of your fellow executive officers doesn’t do any construction work, one of you can apply to be exempted from coverage.

You will need to apply for this exemption by filling out form 1208WA.

Please note: If your exemption request is approved, you will not be eligible to receive benefits and support from the WSIB if you have a work-related injury or develop a work-related illness, unless you have obtained optional insurance coverage.

‘Construction work’ means any skilled or unskilled manual work, the operation of equipment or machinery, or the direct on-site supervision of workers. Periodic site visits are permitted.

Separate Rate for Executive Officers Who are Not Exempt

Any other executive officers who don’t do construction work, but who aren’t the one exempted, can apply for a separate rate group.

The 2016 separate rate group premium for Partners and Executive Officers who don’t do construction work is $0.21 on every $100 earned, to a maximum of $184.80 (based on the 2016 annual maximum of $88,000).

You will need to apply for this separate Rate Group 755 – Non-Exempt Partners and Executive Officers in Construction by filling out form 1209WA . Please be aware that the WSIB might request documents to support your application. This rate can only be given to partners and executive officers who don’t do any construction work and cannot be granted to independent operators, workers, sole proprietors with workers or partners and executive officers who do construction work.

Please Note: If you are allowed Rate Group 755 and your situation changes, making you no longer eligible for the separate rate (e.g.: you start performing construction work), you must notify the WSIB within 10 days.

Now that You Know You need WSIB Coverage, What do You need to Do?

You Need to Register:

You can register online or over the phone. You’ll just need to have the following information ready:

If your business isn’t registered with WSIB, but has already started work, your business will be required to pay any unpaid premiums on your earnings when you register. If your business has not yet registered for any workers you  have, your business will also be required to pay any unpaid premiums on their earnings.

What Happens if you Don’t Register

It is an offence under the WSIA for an unregistered business/individual to do construction work if coverage is required. This means that:

  • You/the corporation are committing an offence and  will be prosecuted as of January 1, 2014.
  • You/the corporation will be required to pay not only for any unpaid premiums, but will also face additional penalties and fines.
  • You/the corporation will not be able to provide a clearance number, to prove that you have WSIB coverage and are clear to work.
  • The company that hires you can refuse you access to the job site until you have registered and can provide a clearance number.
  • The company that hires you can withhold payment.
  • If construction work goes ahead without you registering and providing a clearance number, then both you, and the company that hired you, will be committing an offence under the WSIA and will be fined. The fine for a conviction of an offence under the WSIA is up to a maximum of $100,000.

Get more information on Penalties and Fines.

 

Have Questions?

If you have any questions, or would more information, please see our FAQs, our Administrative Practice Documents, send us an email at needWSIBcoverage@wsib.on.ca or call us Monday to Friday from 7:30 a.m. to 5:00 p.m. at 416-344-1000 or 1-800-387-0750 (TTY 1-800-387-0050).

You Need to get a Clearance Number Before you Start a Job

A clearance number confirms that you are registered with the WSIB and that your account is in good standing. We will provide you with a clearance number that you will need to give to the person/company that has hired you before you start work.

You can request a clearance number online, and we will send you a clearance number immediately, as long as your account is in good standing.

For your account to be in good standing, you:

  • Have registered with the WSIB and have provided all the required information.
  • Are classified in the right rate group for your business activity(ies).
  • Have filed all required premium remittance and reconciliation forms.
  • Have paid all premiums and any other amounts owing (like late fees etc.).

For more information on how to report and pay your premiums, please see How to Calculate Insurable Earnings.

What ‘Coverage’ Means for You

As a ‘deemed worker’ if you have a work-related injury or develop a work-related illness, you can depend on the WSIB to support you throughout your recovery, and help you get safely back to work.

Depending on your situation, we may provide:

  • Replacement of up to 85% of your net earnings starting the day after the injury.
  • Loss of retirement income benefit.
  • Coverage for health care costs.
  • Help getting you back to work safely, and retraining if necessary.

Please note: If your exemption request is approved, you will not be eligible to receive benefits and support from the WSIB if you have a work-related injury or develop a work-related illness, unless you have obtained optional insurance coverage.

You can find more information on the Benefits of Coverage page.

What to do if you have a Work-related Injury or Develop a Work-related Illness

If you have a work-related injury or develop a work-related illness, the accident or illness must be reported to the WSIB within 3 days if you:

  • Require health care, or
  • Need to take some time off to recover, or
  • Can only work partial hours, or
  • Do modified work for less than regular pay, or
  • Do modified work for more than 7 days.

You can report your injury online or over the phone by calling us Monday to Friday from 7:30 a.m. to 5:00 p.m. at 416-344-1000 or 1-800-387-0750.