Sole proprietors in construction with workers
Sole proprietors in construction with workers now must register with the WSIB, report their earnings and pay premiums.
The WSIB considers you to be a sole proprietor in construction with workers if:
- You own your business alone (a non-incorporated business with no partners).
- You carry on business alone, without other people, except for the people you hire as workers.
- Your business performs Class G construction work.
Under the new rules, you are now both a ‘deemed worker’ and a ‘deemed employer.’ This means that you will be covered by the WSIB as a worker and will have to report your earnings and pay premiums to the WSIB as an employer
If you’re not sure how you’re defined under Mandatory Coverage, use the coverage tool on the home page to find out.
If the construction work your company does is strictly home renovations and you are always hired and paid by the occupant or a member of their family, you are exempt, however, you must still have coverage for your workers. Please see our Home Renovator page for more information.
Please note: If you are exempt, you will not be eligible to receive benefits or support from the WSIB if you have a work-related injury or develop a work-related illness, unless you have obtained optional insurance.
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:
- The legal name of your business
- The trade name of your business
- The business’ Canada Revenue Agency Business Number (if available)
- Your name and address details
- An estimate of your gross insurable earnings for a full calendar year. Get more information, and help calculating your insurable earnings.
- Your business activity
- Your email address.
Please note: You may be asked to provide copies of invoices or other financial records to help us confirm that the construction work you are doing is correctly classified and that you are a sole proprietor.
If you aren’t registered with WSIB, but have already started working, you will be required to pay any unpaid premiums on your earnings when you register. If you have not yet registered for your workers, you 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 a business/individual to do construction work if you require coverage but do not register. This means that:
- You are committing an offence and will be prosecuted as of January 1, 2014.
- You will be required to pay not only for any unpaid premiums, but will also face additional penalties and fines.
- You will not be able to provide a clearance number, to prove that you have WSIB coverage and are clear to work.
- The company that hired 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.
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 you fall under the home renovation exemption, 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 or illness 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 (TTY 1-800-387-0050).