Workplace Safety and Insurance Board (WSIB)

Workplace Insurance Welsh LawWe’ve recently had some clients who have experienced WSIB audits. The WSIB requires payment of premiums to the Board, a Crown Corporation of the Government of Ontario regarding each employee of a Company. The payments fund an insurance program for those workers injured in the workplace. Failure to pay or include all employees results in an assessment, penalties and interest.

The WSIB is primarily concerned with employees who work in the business. But frequently, only the husband is listed as the President, Secretary or Treasurer of the company.

He is the only “executive” yet wife and children also work for the Company. In the event they are not listed as “executives”, WSIB takes the position that their compensation as “employees” gives rise to the obligation to pay the insurance premiums at WSIB.

The Solution: List the wife and the children as “executives” of the Company.

That takes us to the issue of control of the Company. If husband wishes control, he can achieve that control in his capacity as a Director and/or as a shareholder. Designating spouse and children as Officers or “Executives” does not alter the “control” issue, but may well avoid the WSIB payments, penalties and interest.

For those that incorporate their companies online or without adequate legal advice, this trap is waiting for you.

We strongly encourage you to obtain legal advice if you are starting up a company and seek to avoid unnecessary expenses and governmental charges. Even if you have already embarked on incorporation, you are not beyond remediation, but you should pay attention to this issue sooner than later.

Please contact us if we can be of any assistance.

One comment

  • Stewart

    Your post, Workplace and Insurance Board (WSIB), is really well written and insightful. Glad I found your website, warm regards from Stewart!

    December 23, 2012

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