Changes to WSIB affecting the construction industry coming in 2013

Are you in an independent contractor? WSIB changes may affect you. Bill 119 has been proclaimed into force on January 1, 2012 and will come into full effect one year later. Under the new legislation, independent operators, sole proprietors, some partners in a partnership and some executive officers who work in construction will also be required to have WSIB coverage starting January 1, 2013.

An important question to ask is “Who is an independent operator?”.

The Workplace Safety and Insurance Act defines an independent operator as an individual who:

  1. does not employ any workers,
  2. reports himself or herself as self-employed for the purposes of an Act or regulation of Ontario, Canada or another province or territory of Canada, and
  3. is retained as contractor or subcontractor by more than one person during the time period set out in a Board policy.

In addition, the term “independent operator” also refers to someone who is an executive officer of a corporation that:

  1. does not employ any workers other than the individual, and
  2. is retained as contractor or subcontractor by more than one person during the time period set out in a Board policy.

Failure to register with the WSIB will result in a penalty. Businesses can choose to pre-register now for coverage that will take effect in 2013. Pre-registration is free.

If you have questions about how this might affect you, please contact your accountant.

The blogs posted on our website provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

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