Changes to WSIB affect Sole Proprietorships and Partnerships

New changes has been introduced recently to Worker Compensation legislation that affect the Ontario Workplace Safety and Insurance Board.

Bill 119 which had been tabled recently has passed the Ontario Legislature and received Royal Assent, which makes it a law.

Changes that were legislated included expansion to the previously used definition of “deemed worker” and “deemed employer” as follows, amongst others:

Deemed workers 

12.2  (1)  The following persons are deemed to be workers to whom the insurance plan applies: 

     1.  Every independent operator carrying on business in construction. 

     2.  Every sole proprietor carrying on business in construction. 

     3.  Except as otherwise provided by the regulations, every partner in a partnership carrying on business in construction. 

     4.  Except as otherwise provided by the regulations, every executive officer of a corporation carrying on business in construction. 

 Deemed employer 

(2)  When a person is deemed to be a worker under subsection (1), the independent operator, sole proprietor, partnership or corporation, as the case may be, is deemed to be the employer for the purposes of the insurance plan. 

These changes affect the WSIB in the way that they make any of sole proprietors, partners and executive officers’ wages subject to WSIB premiums, and gives the right to WSIB to collect these premiums in advance. A few exceptions apply, which should be discussed with your accountant.

From what it looks like, these new provisions apply to construction workers as of January 1, 2012.

For more information and to determine how this new legislation applies to your business, we encourage our readers to consult their accountants.

Register your business with ESC Corporate Services Ltd.

Toll free number: 1.800.668.8208
Office telephone number : 416.595.7177
Fax: 416.595.1268
Email: searchandreg@eservicecorp.ca

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