Preparing the Workplace Safety and Insurance Board (WSIB) Return
Most businesses that pay salaries to non-owners must register with the WSIB. Insurance rates are specific to your industry.
Companies with annual insurable earnings under $300,000 calculate and submit their premiums quarterly. No annual return is required.
Companies with annual insurable earnings over $300,000 calculate and submit their premiums monthly, by the end of the following month. They must also complete an annual reconciliation form [Guide].
The form requires the following information:
- Gross Salaries, excluding executive officers, for the month or quarter (there is an annual employee maximum)
- Rate (per industry)
Premiums can be calculated and reported electronically (http://www.wsib.on.ca/wsib/wsibsite.nsf/public/CalReport). Many banks will allow you to make an electronic payment.
There are special WSIB rules with respect to the construction industry (class G – rate groups 700-764).
Insurable earnings include billings from subcontractors for whom no clearance certificate has been obtained.
Coverage of executive officers is mandatory.
Executive officer insurable earnings include their T4 wages and T5 dividends (amounts can be estimated during the year). If the company does not have any workers, insurable earnings are either the labour portion of the billings or 60% of combined labour and material billings.
1) the company is exclusively involved in home renovations for which they have been directly retained by the occupant of the home
2) the company employs more than just the executive officer and the executive officer is not hands on, i.e. does not use any tools or equipment, one executive officer can be exempted by filing a “Declaration for Exemption from Compulsory Coverage in Construction”.
3) if there are additional executive officers who are not hands on, a lower rate can be obtained by filing a “Request for Rate Group 755, Non-Exempt Partner or Executive Officer in Construction (WSIB form 1209A)”. Request an effective date of Jan 1. Email the request to email@example.com.
Definition of Executive Officer: An individuals who act as a directing mind of the organization or has a key function within the organization (e.g. Operations, Finance, and Corporate Services). An Executive Officer is a member of executive management and not a manager of a team, unit, department or branch.
Where any business, including those not in the construction industry, hires a contractor or subcontractor, they are required to obtain a clearance certificate before the work commences.
Clearance certificates can be obtained at: https://eservices.wsib.on.ca/portal/server.pt/community/eservicespublic/eclearance